Captive agents are only allowed to sell products from the insurer with whom they have contracted. As a result, the markets available to them are limited because most insurers that use captive agents limit the type of insurance they can sell. Regardless, the captive agent owes a duty to the insured to acquire the insurance requested if available from the insurer with whom they’ve contracted.

The Supreme Court of Illinois was asked to determine whether an insurance company’s agent had a duty to exercise ordinary care and skill in procuring the specific insurance coverage requested by his customer. The appellate court held that the Illinois Code of Civil Procedure imposes a duty on an insurance agent to act with ordinary care under the circumstances presented in this case. In Skaperdas v. Country Cas. Ins. Co., the Supreme Court analyzed the statute and state court precedent before deciding the obligation owed by a captive agent to the insured.

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