In the United States, insurance is commonly regarded as a necessity. They say if you don’t have any insurance, you must be filthy rich. But let’s say you do have a term insurance and you figured in a car accident. You know you are supposed to be paid a certain amount as compensation to be paid by your insurer. But what if the amount the insurer will pay is considerably less than what you expected? Perhaps this is a case of insurance agent error.

The Responsibility Of The Insurance Agent

When you got your insurance, you are supposed to be told all the important things you need to know about what you are getting into such as the accidents that you will be covered with, the amount you need to pay for the coverage, the time period of your coverage and so forth. Your insurance agent is supposed to give you all the right information about these things. He should do all these things because he should act as your legal representative with respect to the insurance company.

He must have a license before he can represent anyone. And being licensed he is expected to have a fiduciary function of representing you to the insurance company. In other words, you must have faith in him that he will represent your best interests and not that of the insurer. That is his first and foremost responsibility to you. However, since it is the insurance company that pays his commission, there might be a conflict of interest here. You need to be sure that his focus is on your need for insurance, and not his desire to earn commissions from your insurance.

For the uninitiated, insurance can be a complicated thing. Therefore, it is the duty of the insurance agent to explain to you everything that is involved in your insurance coverage in terms that you can easily understand. It is very important that he do it honestly and truthfully. But what if he commits an error? One of the most common errors the insurance agents commit is the handling of the underinsured/uninsured motorist coverage. This is the coverage that you need because it will give you protection in accidents where the other driver is not insured or is underinsured. The insurance agent must offer you this coverage, and if you don’t want it, you need to put in writing that you are declining the coverage.

Insurance Agent Errors You Need To Know

There are several types of Insurance agent error that you need to know before you consider getting your insurance coverage.

1. The insurance agent misrepresented the coverage

If the agent sold you an insurance that did not meet your needs and is not suited to your conditions, you can have a legal recourse against him. He is required to have Errors and Omissions insurance for this kind of situations. You can use it to get compensation if the insurance agent did not act in your best interests.

2. The insurance agent did not put in writing your choice to decline coverage

The insurance agent must not forget to offer you the uninsured/underinsured coverage and if you decline it, he should put it in writing and have you sign the document. If he forgets to do this, and you were injured by a driver who is not insured, your attorney will ask the insurance agent to give him the signed document. If he is not able to do so, the law will assume that you have the required insurance.

3. The insurance agent committed material misrepresentation

If the insurance agent has given you wrong information or omitted information about your coverage that influenced your decision, and the time came that you need to file an insurance claim, the insurance company may deny your claim for coverage. You can sue for damages but you need to show that it was because of the error of the insurance agent, not yours. The insurance company may decide in your favor especially if you have been faithful in paying your insurance premiums.

The Need To Prove Insurance Agent Error

Proving that it was the error of the insurance agent can be difficult. Eventually, it will all come down to your word against that of the insurance agent. Therefore, you need to be careful in reading the fine prints of the insurance contract that you are signing into. Don’t buy an insurance policy until you have read all the details and understood all its ramifications. If you don’t understand anything indicated in the policy, ask the insurance agent. Don’t leave any stone unturned. And be sure that the insurance agent you are talking to is honest and trustworthy.

What To Do If There’s A Problem

When you see that your insurance agent or the insurance company is acting against your best interests, there are lawyers who can help you get the compensation that you deserve. They will represent you in court and will help you fight your legal battle against any party or parties that have caused you personal damage.