I have heard this question asked numerous times over the last year. The client’s policies are received and reviewed by your agency and when you contact the client to arrange a time to drop them off, they advise you that they don’t want the policies and for your agency to hang on to them. Is this ok or is it a potential problem?
Let’s assume that you follow your client’s instructions and hang on to the policies (probably storing them electronically). The client then subsequently suffers a loss only to find out that the loss is not fully or maybe even partially covered. There is a good chance that your client will take the position that they were not aware of the particular exclusions, conditions or limitations applying to the loss since they never saw the policies. They may have some success in using this defense since technically they never did see the policy. In most states, there is a legal liability duty that clients have to read their policy. Whether they actually read the policies in another matter.
So what should you do? The best course of action is to send the policies anyway. A common response might be something such as “I can appreciate that you really don’t see a need to receive the policies but since technically an insurance policy is a contract, it is best that you receive the policy and review it to make sure that everything is in order. Certainly feel free to advise if you have any questions or see areas that are not correct.”
Since an insurance policy is technically a contract, why would someone not want to read a contract that applies to them?
Thus, it is best to send / deliver the policies to the client. If your agency provides clients with a portal to store information such as policies, when the policies are uploaded to the portal, the client should be so advised with a suggestion sent to them to remind them that the policies should be reviewed.