The South Carolina Court of Appeals has concluded that an authorization to an insurance company to draft premium amounts from a checking account was insufficient consideration to form a contract for life insurance. Boyd v. Liberty Life Insurance Company and SelectQuote Insurance Services (Ct. App. Op. 4985, June 13, 2012)
Boyd also argued the SelectQuote agents misquote of the $417.00 was binding on Liberty Life because SelectQuote acted as Liberty Life’s agent. The Court of Appeals rejected the argument, holding that communicating a premium amount to a prospective insured does not convert an insurance broker into an insurance agent. Moreover, Liberty Life did not approve Boyd for the non-smoker rate mistakenly quoted by the agent. An insurance broker cannot be converted into an agent of the insurer without evidence creating an inference that he was acting at the “instance or request” of the company.