An insurance broker transacts insurance with—but not on behalfof—an insurer, while an agent transacts insurance with and onbehalf of both the insurer and the insured.
In Estate of Morse ex rel. Morse v. Titan Insurance Co., aMichigan appellate court was asked to determine the capacity ofAdrian Insurance Agency when it obtained automobile insurance forCharlotte Morse with Titan Insurance Co. The trial court ruled thatAdrian was an agent of Titan and reformed a policy to place it ineffect at the time Morse was injured rather than the date stated onthe policy.
On Nov. 19, 2004, Morse went to Adrian to insure a 1996 FordTaurus. She obtained insurance under a Titan policy and paid thepremium for six months of full coverage on Nov. 19, 2004. TheAdrian agent, however, prepared the application for insurance withan effective date of Nov. 25, 2004. Titan, in turn, issued a policyeffective on the date Adrian requested.
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