Intermediaries should be regarded as agents of insurers when they obtain pre-contract information, unless they are genuinely searching the whole market on the insured's behalf, suggests the Law Commission.
The Law Commission has published its third issues paper on insurance contract law, which discusses who the intermediary is acting for in receiving pre-contract information and what should happen if a mistake or fraud by an intermediary leads to information not being disclosed to an insurer. It states: “Our tentative view is that the intermediary should be regarded as the insurer’s agent for the purposes of obtaining pre-contract information, unless the intermediary is genuinely searching the market on the insured’s behalf. This means that single tied agents and multi-tied agents will be ta...
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