Duties and Liabilities of Insurance Brokers – 3
Other cases seem to apply similar reasoning. The 11th Circuit, in Cotton v. Massachusetts Mutual Life Insurance Co., found that an insurer, just by selling an ERISA insurance policy, is not a fiduciary. The Fifth Circuit, in Monumental Life Insurance Co. v. Hayes-Jenkins, also found no fiduciary duty owed by an agent to an insured. The Fifth Circuit found that the agent, Nova Star, was acting exclusively as Monumental Life Insurance Company’s (MLIC) agent for the solicitation of insurance customers and the collection and remission of MLIC’s mortgage life insurance premiums, and not as an agent of the plaintiffs, let alone as their fiduciary.
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