Tag archives: Broker

The nature of a broker’s mandate

By Patrick Bracher (ZA) and Daniel Breier on November 10, 2022 Posted in Insurance

In a decision involving a broker who introduced business to a medical scheme, the court drew an important distinction between a mandate to enter into contracts on behalf of the medical scheme as the principal and a mandate or authority to introduce business to the medical scheme. Where a principal appoints someone to perform juristic … Continue reading

Payment to broker may not be payment to insurer (US)

By Patrick Bracher (ZA) on February 10, 2021 Posted in Insurance

The Georgia Court of Appeals (US) found that payment of premiums by house owners insurance policyholders to their insurance agent was not payment to the insurer where notice had been given to the policyholders to pay directly to the insurer. In October 2014, the insurer sent a renewal notice to the policyholders requiring them to … Continue reading

Difference between advice and information provided by a professional (for example a broker) – English law

By Patrick Bracher (ZA) on April 23, 2019 Posted in Insurance

English law relating to professional negligence draws an interesting distinction between whether the professional person is giving information or giving advice. This is not specifically part of South African law but it is relevant when considering liability, for instance, of brokers under the FAIS Act. The difference is between providing information for the purpose of … Continue reading

Broker beats negligence claim for not pointing out copper exclusion (US)

By Patrick Bracher (ZA) on September 29, 2016 Posted in Insurance

A Kentucky trucking company suffered a theft of copper shipments and the insurers rejected the claim because there was a copper exclusion in the policy. The company then sued its broker for negligently failing to notify the company about the copper exclusion in its renewed policy. The policies for the previous two years had provided … Continue reading

Communication via brokers held not to be privileged

By Sandra Sithole (ZA) on September 22, 2016 Posted in Insurance

A US court has ruled that communications between lawyers and insurers which passed through a London broker are not privileged. This is because entrusting lawyer advices to a third party, such as a third party broker, amounts to a waiver of privilege since those communications are no longer confidential. The London brokers acted as nothing … Continue reading

Broker liable for under-insurance of business interruption

By Patrick Bracher (ZA) on March 3, 2014 Posted in Insurance

One of an insurance broker’s many duties is to see that the client has not under-insured. A broker may not have to advise the client on the correct sum to be insured. That may, for instance, need the advice of an expert such as an auditor in the case of business interruption insurance. But the … Continue reading