Thursday, July 16, 2009

Companies' responsbilities for agents' misdeeds

Earlier, I stated my opinion that real estate companies are probably responsible for the misconduct of their agents. This is based on the fact that the agents are only allowed to transact business under the license of the companies. The agents themselves are not in any separate sole proprietorship, partnership or company.

What about insurance agents and the insurance companies? There are cases that state that insurance companies are not liable for the misconduct of agents representing them. In addition to these cases, there is also the problem that insurance agents are normally working in a separate firm or company. In other words, they are only marketing representatives of the company. However, if the agents have a track record of misconduct and their companies take no disciplinary action against them, interesting issues arise as to whether the companies are in some way negligent.

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