Legal Opinion Says Agents Have no Fiduciary Duties

IBA West and the California Insurance Department now have dueling legal opinions on whether brokers and agents have a fiduciary duty to their clients. IBA West on Friday released its own legal opinion to counter an opinion by the Insurance Department earlier this month. Department Senior Staff Counsel Jon A. Tomashoff said agents and brokers must avoid undisclosed conflicts of interest, avoid secret profits by fully disclosing to the insured all compensation the broker or dual agent will or may receive from the insurer, and obtain insurance on the best terms possible for their clients. N...