Life Insurance/E&O Case

I have an insurance bad faith case that also has errors & omissions issues on the part of the agent. Should I pursue both?

Answer: I’m not sure it makes sense to pursue a separate E & O claim in conjunction with a bad faith case against the insurance company. We have in Oklahoma a "deeming statute" (36 O.S. Sec. 1435.3): "A. Every insurance producer, customer service representative, or limited lines producer who solicits or negotiates an application for insurance of any kind shall, in any controversy between the insured or the insured's beneficiary and the insurer, be regarded as representing the insurer and not the insured or the insured's beneficiary. This provision shall not affect the apparent authority of an insurance producer."

Under this statute, any wrong act on the part of the agent becomes the act of the insurance company for which he is writing the business. I would think you would almost always be better off pursuing the claim for the agent's error, if any, against the big insurance company rather than the local, individual agent.