Avoid Any Agent Who Suggests You Lie to Your Insurer While most insurance agents and brokers are honest, trustworthy individuals, the industry has a few bad apples. How can you tell if your insurance intermediary is dishonest? Here are 10 signs that your agent or broker may be doing something illegal.
Is an insurance company an agent of the insured?
An agent is a person who represents a principal, who can be another person or a company, and act in the principal’s behalf. An insurance agent represents the insurance company and an insurance broker represents the insurance applicant — both must be licensed by the state in which they conduct business.
What makes an insurance agent an unscrupulous agent?
Some unscrupulous agents will collect a premium for one type of policy, send the insurer a premium for a cheaper policy, and then pocket the difference. An unscrupulous agent may lie on an insurance application to make a business look acceptable to an underwriter.
How to know if your insurance agent is doing something illegal?
Here are 10 signs that your agent or broker may be doing something illegal. I. Your agent is overly aggressive and pressures you to buy a policy right away. Beware of any agent who pushes you to buy a policy before you’ve had time to consider your options. He or she may claim that “this deal won’t last long” or that a price hike is imminent.
Who is liable when an insurance agent makes an error?
Both agents and brokers can be held liable in certain situations when they make errors and fail to carry out their duties. When it comes to insurance agents, an insurance policyholder may hold the insurance company responsible, along with an individual agent.
What happens if an insurance agent fails to file a property insurance claim?
Six months later, the warehouse is badly damaged by a fire. The owners file a property claim with their insurer but the amount they receive for the claim is substantially less than expected. The agent failed to include building ordinance coverage in the property insurance application.
