14.13 Uninsurable Risk|Exposure

• Jurisdiction: Arizona

14.13 Uninsurable Risk/Exposure. Insurance producers who err in failing to obtain coverage for clients may nonetheless be found not to be negligent if the coverage sought could not have been acquired under the circumstances.¹⁶⁸ Coverage may be unavailable either because the client is not insurable or is otherwise ineligible for the type of coverage in question, or because the client is seeking coverage under terms no insurance carrier would accept.¹⁶⁹

To defend such a claim successfully, an insurance producer may have to show that the desired coverage was unavailable from any insurer at any price.¹⁷⁰ However, the putative insured has the burden to make a prima facie case that the coverage desired would have been in force but for...