Misrepresentation by an Insurance Broker or Agent

When a person is looking for an insurance policy to cover their property, they are usually provided with information about the policy through a broker or agent. While these employees are supposed to have their prospective customer’s best interests in mind, they are also acting as salespeople for a policy. As a result, some brokers or agents may bend the truth on what is included or provided in a policy to get a prospective policyholder to sign their contract. However, any misrepresentation of a policy isn’t legal and may be grounds for legal action.

Problems with Policy Misrepresentation

An insurance agent should provide truthful information to prospective clients when trying to sell a policy or increase coverage on an existing policy. They may cause serious financial problems for their customers in the future and are likely violating the standards they’re obligated to uphold when they commit the following:

  • Misrepresenting the extent of damages covered
  • Misrepresenting deductible thresholds
  • Misrepresenting the amount of coverage provided
  • Misrepresenting non-property coverage, such as lodging expenses after home damages

An agent should know clearly what is and isn’t included in the policy and accurately present this information to a prospective customer before asking them to sign a contract. Failing to disclose accurate policy information can be considered bad faith and may be grounds for legal action if this misrepresentation results in an unexpected lack of adequate coverage for damages.

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If your property has been damaged and you haven’t received the coverage you were told would be provided by a broker or agent, these insurers may be held responsible for their misrepresentation. To learn more about the legal process involved in pursuing a bad faith insurance claim, contact Smith Kendall, PLLC, today by calling 214-361-6124.

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Smith Kendall, PLLC

5910 North Central Expressway #925
Dallas, TX 75206

Phone: (214) 361-6124
Fax: (214) 361-6126

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