Insurance Misrepresentation
MrInsurability February 12, 2017 No Comments

Insurance Misrepresentation

Are you a victim of insurance misrepresentation? Do you depend on your insurance agent to tell you what you need? Does your agent explain what a policy covers, what it doesn’t cover and where to get it?

Do you understand the language used in writing a policy?

Today, crooked insurance agents are taking advantage of people who don’t know this information. Giving people incorrect information is what’s know as insurance misrepresentation. The problem has reached such levels, that many states have implemented new laws. Now agents and insurance companies must provide accurate information about any policy that they are selling.

It is now illegal for any insurance representative to make any kind of false or misleading statement. They cannot knowingly omit any important or necessary fact in their advertisements or sales presentations.

Your agent has to be totally honest with you all of the time. If not, the agent can lose his or her job and possibly even go to jail.

Here are 9 things to watch out for. It is illegal for an insurance agent or company to:

  • Misrepresent what a policy covers or does not cover
  • Misrepresent any advantages or disadvantages of a policy
  • Trying to get you to cancel your policy
  • Make an incomplete comparison of policies or other financial products
  • Use a name or title for a policy which misrepresents the real content of the policy
  • Lie about the financial condition of an insurance company or any person involved in the insurance business
  • Give you false information about profits that have been or will be paid to policyholders
  • Tell you lies that trick you into giving your policy away or to take a loan on it
  • Misrepresenting an insurance policy as being something that can be sold or traded to someone

Here are 8 things to do to keep from becoming a victim of an insurance scam:

  • Research all of your available choices, before you buy a policy
  • Decide what you want the policy to do for you (why are you buying it?)
  • Read any information about the policy that you are considering and make sure you know what you are getting
  • Be sure to ask your insurance agent questions
  • Deal with a reputable agent, preferably an independent agent who can offer you coverage from multiple insurance carriers
  • Take your time when choosing a policy, because you’ll want to be sure that you have the right coverage
  • Make sure that you have everything in writing
  • Most importantly, make sure you know what you are signing before you sign it

If you ever feel that the insurance agent or company has misrepresented an insurance policy call your state’s Department of Insurance. You can find your state’s office HERE.

They are there to make sure that you don’t get cheated and they are good at their jobs!

If you need insurance coverage or need help with your current coverage, be sure to contact MrInsurability at our website We’re here to help!