Life Insurance Agent Liability-2

Texas Life Insurance Attorneys need to be aware of the agency principals whereby an agent can be held liable for his or her actions.
An agent may be liable for violation common-law or statutory duties to the insured.  For example, an agent who undertakes to get insurance may be liable for negligently failing to get proper insurance for the insured.  An example of this is found in the 1987 opinion from the San Antonio Court of Appeals styled, Rainey-Mapes v. Queen Charters, Inc.  An agent may also me liable for negligently failing to notify the insureds that their policy is about to expire.  This is discussed in the 1985 Texas Supreme Court opinion styled, Kitching v. Zamora.
Statutes prohibiting misrepresentations, unfair settlement proctices, and unfair discrimination apply to “any person” engaged in the business of insurance and include agents and brokers.  Statutes on these issues are Sections 541.002(2), 541.151, 544.051(6), and 544.052.
The unfair insurance prohibitions in chapter 541 of the Insurance Code apply to agents, adjusters, and others engaged in the “business of insurance,” such as the sale or servicing of policies.  This is discussed in the Texas Supreme Court opinion styled, Liberty Mut. Ins. Co. v. Garrison Contractors, Inc.
Keep in mind that while an individual agent is subject to being sued under the statute, for the agent to be liable there must be proof that the agent himself committed a violation that caused damage to the plaintiff.  This is discussed in the 2004 5th Circuit Court of Appeals opinion styled, Hornbuckle v. State Farm Lloyds.
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