Michigan Court of Appeals; Docket #258646; Unpublished
Judges Sawyer, Kelly and Davis; unanimous; per curiam
Official Michigan Reporter Citation: Not applicable, Link to Opinion 
STATUTORY INDEXING:
Not applicable
TOPICAL INDEXING:
Insurance Agents (Duty to Insured)
CASE SUMMARY:
In this unanimous unpublished per curiam opinion, the Court of Appeals affirmed summary disposition for defendant-insurance agency, finding that defendant had no affirmative duty to advise or counsel an insured regarding the adequacy or availability of insurance coverage. The plaintiff in this case brought a negligence action against defendant, claiming the coverage defendant obtained for plaintiff was inadequate to compensate plaintiff when plaintiff’s hotel was damaged by fire. In affirming summary disposition for defendant, the court noted there are four exceptions to the general rule that there is no affirmative duty for a licensed insurance agent to advise or counsel an insured about the adequacy or availability of coverage. Those exceptions arise in the following circumstances: 1) an agent misrepresents the kind or amount of coverage available; 2) an ambiguous request is made that requires clarification; 3) the agent gives inaccurate advice; or 4) the agent assumed an additional duty by express agreement or by promise. None of those exceptions were present in this case. Therefore, summary disposition for defendant was proper. In this regard, the court stated:
“In a negligence action, a plaintiff must show that the defendant owed the plaintiff a duty, the defendant breached that duty, causation and damages. . . . There are four exceptions to the general rule that there is no affirmative duty for a licensed insurance agent to advise or counsel an insured about the adequacy or availability of coverage, (1) the agent misrepresents the nature or extent of the coverage offered or provided, (2) an ambiguous request is made that requires a clarification, (3) an inquiry is made that may require advice and the agent, though he need not, gives advice that is inaccurate; or (4) the agent assumes an additional duty by either express agreement with or promise to the insured.”
