Georgia Adjuster Practice Test

Who can bring errors and omissions claims against insurance agents or producers?

1. Only their clients

2. Insurance companies only

3. Their clients and the insurance companies they contract with

4. Only state regulators

The correct answer is: Their clients and the insurance companies they contract with

Errors and omissions claims often arise when there is an allegation that an insurance agent or producer has failed to meet the standards of care in providing their services, which results in a financial loss for their clients or the insurers they represent. The correct answer recognizes that both clients and insurance companies can initiate such claims. Clients might bring a claim if they believe that their agent's negligence has led to a denied claim or insufficient coverage. This could potentially lead to financial losses that the clients are seeking to recover. On the other side, insurance companies can also file errors and omissions claims against agents or producers, especially if the agent's actions have adversely affected the company’s interests or have resulted in losses that the company must then address. This aspect of the answer highlights the multifaceted nature of the insurance industry, where agents have obligations not only to their clients but also to the insurers they represent. This understanding of the roles of clients and insurance companies in the context of errors and omissions claims is crucial for properly assessing liability and professional conduct within the industry.