14.11 Duties to Non-Clients

JurisdictionArizona

14.11 Duties to Non-Clients. The general rule in Arizona is that absent special circumstances, professionals, including insurance producers, owe no duty to non-clients.156 To establish a duty, the non-client must be a foreseeable and specific third party that the professional knows has relied on him for protection from a foreseeable risk of specific harm. 157

An insurance producer’s obligations to his client are for the client’s benefit.158 Thus, an insurance producer owes no obligation to recommend optional coverages or higher limits to his client for the benefit of third parties.159 Even where the insured may be required to procure a certain kind of coverage to protect his customers, and the insurance producer would have a duty to the insured to assist in procuring that coverage, this does not create an obligation for the insurance producer to the insured’s customers.160

Nevertheless, insurance...

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