Has Insurance Agent Negligence Led to the Denial of Your Claim?

By Clint Scott | June 28, 2016

Has Insurance Agent Negligence Led to the Denial of Your Claim?When we talk about agent negligence, we’re not talking about your agent stealing your premiums or selling you a fake insurance policy. As popular as that trope might be on television or in film, outright theft is pretty rare (which is why stories about it go viral so quickly online; it happens so infrequently that it becomes instant news). Agent negligence, however, is a far more common problem, and it could lead to your claim being denied even if you crossed all your “T’s” and dotted all your “I’s.”

Acts of agent negligence

There are a number of ways an agent may be negligent when it comes to your insurance policies. Some of the more common ones include your agent:

  • Completing your application with inaccurate information. Agents often complete applications without asking policyholders the questions contained on the application. This may result in false information being provided to the insurance company and a denial being issued for misrepresentations on the application. This may be negligence for which the agent and the insurance company are responsible.
  • Giving you incomplete information about your options. Your agent’s job is to listen to your needs, figure out what coverage you require (and anticipate other types of coverage that you might end up needing), and then create options for you. Failing to properly explain what you might need and why may constitute negligence on the agent’s behalf.
  • Failing to submit your application. The agent is the person who submits your application for insurance to the underwriter. Failing to procure coverage is one of the more common errors made by agents, and as such is a common reason why people sue their agents and insurers.
  • Improperly explaining the exclusions in your policy. It is not enough to simply say there are exclusions; your agent should explain what that means, so you are prepared. Likewise, he or she should offer you options for additional coverage to close up any gaps.
  • Improperly valuing your assets, leaving you with inadequate coverage. With any policy, you may be inadequately covered. Your agent should identify areas where your coverage may not be enough.
  • Failing to properly explain any changes in your coverage. Some agents send out a newsletter, or schedule an annual review of your coverage in case anything has changed. If your agent fails to do this, or does not fully explain what changes have been made, why, and how they might affect you, you could have a claim for negligence.

Insureds count on their agents to obtain for them the right type of policy with the right amount of coverage. As a policyholder, you may be able to make a claim against your insurer if your agent failed to perform his or her duties with a certain level of care.

At McWherter Scott & Bobbitt, our insurance dispute attorneys assist policyholders whose claims have been denied through no fault of their own. To schedule consultation with an experienced Tennessee bad faith attorney, please contact Brandon McWherter or Clint Scott, or one of our offices in Nashville, Chattanooga, Memphis, Jackson or Knoxville, by calling 731-664-1340 or using our contact form.

 

Posted in Insurance Disputes