STATE LAW – UTAH LIBRARY – GUIDE 10
Utah Insurance Agents, Applications & Failure to Procure Coverage
When expected coverage is missing or materially different from what was requested, the application and procurement record may create issues separate from interpretation of the issued policy.
- Obtain applications, quotes, proposals, renewals and change requests.
- Preserve communications concerning requested limits and coverages.
- Identify the producer’s role and relationship to the insurer.
- Compare requested coverage with the policy and endorsements actually issued.
Utah insurance producers can be liable for negligent procurement
An insurance agent or broker who undertakes to obtain requested coverage must exercise reasonable care in carrying out that undertaking. A procurement claim should identify the coverage requested, what the producer agreed to obtain, what was actually issued, and whether the alleged failure caused the uncovered loss.
The scope of the undertaking should be documented
Applications, proposals, renewal communications, recommendations, and representations are important evidence in determining whether the producer merely placed requested coverage or assumed a broader advisory role.
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