In a UK case, an agent suggested a plaintiff issue a policy from an insurance company, but did not clearly inform the plaintiff that the insurance company was facing winding-up proceedings. After the plaintiff was insured, the insurance company was wound up. As a result, the car met with an accident without insurance. The judge ruled that the agent was liable for negligence because he did not act cautiously and did not warn the plaintiff of the financial crisis of the insurance company in advance.
Therefore, an agent (1) must operate his business with the highest integrity and loyalty; (2) must do their best to meet the requirements of policyholders, and put the interests of policyholders in the first place; (3) should not use misleading or excessively exaggerated words to promote policies.
UK Case: Osman v Moss [1970] 1 Lloyd's Rep 313
?unique=44277e4)