Rider v. Lynch

In Rider v. Lynch, 42 N.J. 465, 476, 201 A.2d 561 (1964) the Court held that the broker's implied misrepresentation to the insured concerning available automobile liability coverage estopped the broker from relying on the insured's failure to read her policy. Ibid. One who holds himself out to the public as an insurance broker must exercise reasonable skill, care, and diligence in the execution of his responsibilities. In Rider, the Court stated that an insurance broker is expected to possess reasonable knowledge of the types of policies, their different terms, and the coverage available in the area in which his principal seeks to be protected. If he neglects to procure the insurance or if the policy is void or materially deficient or does not provide the coverage he undertook to supply, because of his failure to exercise the requisite skill or diligence, he becomes liable to his principal for the loss sustained thereby. Ibid.