An independent life insurance broker is considered the agent for the insured in negotiating insurance. However, under certain circumstances, an insurer may still be held responsible for a broker’s conduct if the insurer cloaks the broker with “apparent authority” or ratifies the broker’s actions. For example, if the insurer accepts applications exclusively through certain brokers, directs or supervises the broker’s activities, provides marketing materials to the broker, and/or allows the broker to collect premiums, a court may treat the broker as the insurer’s agent for specific purposes. The practical implications are as follows:

For Policyholders: When you work with a broker, you are generally responsible for their actions. If the broker fails to submit the appropriate paperwork to the insurer or misrepresents a policy, the legal consequences may fall on you, not the insurer, unless you can prove the broker was acting under the insurer’s apparent authority.
For Insurers: While Florida law favors treating brokers as agents of the insured, insurers must still be cautious. Courts may impose liability if the insurer creates the appearance that the broker is authorized to act on its behalf.
For Brokers: Brokers owe duties of loyalty and honesty to their clients, the insureds. Brokers must disclose material facts, explain policy terms accurately, ensure that coverage procured matches the insured’s needs, and provide accurate and complete documents to the insurer.

Under Florida law, a life insurance broker is considered the agent of the insured, not the insurer. But the legal landscape is nuanced and the facts of the relationship must be examined. Depending on how the broker and insurer interact, liability may shift. Both consumers and insurance companies should understand these distinctions to protect their interests.

Please contact Joel Ewusiak for legal help with your specific matter.