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PIA of New Jersey Wins in Important Legal Battle for Agents

On August 4, the Supreme Court of New Jersey decided an important case that maintains the current standard of care agents and brokers owe to...
August 10, 2004

On August 4, the Supreme Court of New Jersey decided an important case that maintains the current standard of care agents and brokers owe to their clients. PIANJ had filed an amicus curiae (friend of the court) brief in the case, President vs. Jenkins, because the court could potentially have raised the standard of care producers owe to their clients and could have required producers to become guarantors against coverage gaps.
 
"We are very pleased with the Supreme Court's decision," said PIA of New Jersey President Louis Beckerman. "Professional agents and brokers have the utmost duty to provide accurate and ethical service for their clients. However, policyholders hold an equally important responsibility to be truthful and forthcoming so that their producers can do their jobs."
 
"Since we announced the court decision to our members, we've received an extraordinary response from the agent-broker community," Beckerman later said in an e-mail to the National Underwriter. "We are hearing, and agree with, a very strong sentiment that the protection of agents against being sued by a client who misstates facts in his policy application is fundamentally important."
 
Read a summary of the decision

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