A Connecticut Supreme Court ruling has drawn a clear line: insurance brokers aren’t required to notify clients about policy non-renewals – unless they specifically agree to do so.
On Sept. 9, the Supreme Court of Connecticut issued its decision in Lee Deer et al. v. National General Insurance Company et al., a case that offers important guidance for insurance professionals and agencies regarding the scope of a broker’s duty after placing a policy.
The dispute began when Lee and Keleen Deer purchased a one-year homeowners insurance policy for their Waterford, Connecticut home. The policy, underwritten by Century-National Insurance Company, was procured with the help of their longtime brokers, Kevin Trahan and The Trahan Agency, Inc. Shortly after the policy was issued, a Century-National representative inspected the home and found that a section of the exterior siding was missing. Century-National sent an email to the brokers, instructing them to inform the Deers that repairs were required as a condition of continued coverage, and that proof of repair needed to be submitted by a specific date – three months before the policy’s renewal.
The parties later disputed whether the brokers actually conveyed this information to the Deers. When Century-National did not receive proof of repair by the deadline, it sent another email to the brokers, stating that the policy would not be renewed unless the repairs were completed and proof submitted by the policy’s expiration date. Approximately two months before expiration, Century-National sent a nonrenewal notice to the Deers by certified mail. The Deers claimed they never received this notice, and the postal service ultimately returned it as unclaimed.
The policy expired on June 27, 2020, and was not renewed. Weeks later, the Deers’ home was destroyed in an accidental fire. When they filed a claim, Century-National denied coverage because the policy was no longer in effect.
The Deers filed suit against both the insurer and their brokers, alleging that the brokers had a duty to notify them of the insurer’s communications, including the nonrenewal notice, and that the brokers’ failure to do so constituted negligence. The trial court granted summary judgment for the brokers, and the Appellate Court affirmed. The Supreme Court of Connecticut also affirmed, holding that, under Connecticut law, an insurance broker’s duty to the client generally ends once the broker has procured the requested policy, unless there is an express agreement or special circumstances indicating the broker agreed to assist with renewals or maintaining coverage.
The court emphasized that Connecticut statutes and the insurance policy itself placed the obligation to notify the insured of nonrenewal on the insurer, not the broker. In this case, the insurer attempted to deliver the nonrenewal notice by certified mail, as required by law and the policy’s notice provisions.
The Deers also argued that their long-standing relationship with the brokers created a special duty. The court found that although the brokers had previously procured insurance for the Deers for many years, there was a two-year interruption in their relationship prior to the policy at issue. The court also noted there was no evidence that the brokers had agreed to assist with renewals or had previously communicated renewal information to the Deers.
The Supreme Court’s decision makes clear that, unless a broker specifically agrees to assist with renewals or ongoing coverage, their legal responsibility to notify clients about non-renewals ends once the policy is placed. The ruling underscores the importance of clear communication and documentation between brokers and clients, especially as renewal dates approach.
For insurance professionals, this case provides a definitive statement on the limits of broker liability in Connecticut and highlights the need to clearly define the scope of services provided to clients. For policyholders, it serves as a reminder to stay proactive about policy renewals and to maintain direct communication with both their insurer and broker.
