Insurance Broker Fraud
Insurance Broker Negligence and Fraud
Insurance broker negligence occurs when an insurance broker acts in a negligent way that results in lack of insurance coverage. Insurance broker fraud can occur when an insurance broker makes misrepresentations or omits important information in the process of selling an insurance product. Insurance agents and underwriters may also commit similar insurance negligence and fraud.
Examples of Insurance Broker Fraud
An omission about details related to the insurance policy can constitute negligence and fraud. Examples of omissions could relate to information about replacement costs or failure to disclose terms of the policy. Errors on the part of the insurance broker could also constitute fraud or negligence, as could incompetence.
Other examples of insurance broker fraud include willful misrepresentation about certain insurance policies or their conditions; or the sale of inappropriate insurance policies – including some types of annuities – to elders.
Actions Related to Insurance Broker Negligence
A number of actions may be brought related to insurance broker negligence. Related actions include but are not limited to: breach of fiduciary duty or duty to advise according to the California Insurance Code; failure to provide, write, or secure adequate insurance, or failing to secure and provide the insurance after it has been purchased; omissions or disclosure failures about the terms of an insurance policy. Bad faith insurance can occur if an insurance broker, agent, or underwriter does not act in the best interest of their clients.
The Evans Law Firm represents senior victims of insurance broker fraud and stockbroker fraud in California.
Some of the following claims examples may constitute fraudulent investor practices:
- misrepresentations and omissions about insurance policies and the details therein;
- inappropriate advice or recommendations, especially to elders regarding annuities;
- pension fund fraud;
- failure to give appropriate warnings regarding unsuitable insurance policies;
- financial abuse of elders by selling unsuitable insurance policies, including variable and other deferred annuities;
- failure to diversify or over-concentration of insurance investments (especially with respect to annuities);
- failure to procure and deliver insurance that was purchased.