Article (in Estonian): O.-J. Luik, K. Saluste, "Kas kindlustusõiguses eksisteerib vastutustundliku kindlustamise põhimõte?" (Does a principle of responsible insurance exist in insurance law?), Juridica 2025/3, pp. 174–184. Article page on Juridica (published 2025)
Co-author: Kadi Saluste.
Research question
Does insurance law recognise a principle, comparable to responsible lending in credit law, requiring the distributor to help the customer make an informed choice of cover?
Main arguments
Insurance distributors, that is the insurer, the broker and the agent, must identify the customer's demands and needs from the information provided, recommend the most suitable available product and give explanations matched to the product's complexity and the type of customer. The Insurance Activities Act (kindlustustegevuse seadus, KindlTS) relieves the insurer of this duty where a broker intermediates and does not apply it to large risks. The authors examine how far the duty to support an informed choice extends, and when and to what extent each type of distributor is liable for breaching it.
Relevance for practice
Where a policyholder is left uncovered because the wrong product was sold, the dispute is not only about the insurer's declinature but also about the quality of advice. A distributor's liability may extend to putting the client in the position they would have been in had the right policy been concluded. The current rule is KindlTS § 221 (Riigi Teataja). See also Insurance needs and distributor liability.