Agent Manipulation and Unethical Behavior

chrisgeo · #1 01-20-2009, 06:33 AM

Greetings. I am in Texas and have a situation with my insurance agent.

I have a little carpet cleaning business and was contacted by an agent of a large insurance company. Apparently a family member referred them to me but I did not solicit the call. Anyway, I decided to sign up with them since I was in the market for insurance and the person who gave them my number has been with them for several years.

I specifically told them my concerns, gave them a list of equipment and wanted to make sure I am covered in any event because this is my lively hood. The other day there was an accident and the van caught fire (not driving related). I called my insurance agent to see if it would be covered and worth a claim. The damage isn't major but it's not really minor either. I can fix it on my own thank God.

I find out I only have liability on my work van. This is not what we agreed upon. They claim I signed the paperwork. They were rushing to everything through and I did not read it first, I admit that. So my mistake there.

However, I go over my paperwork today and come to find out they gave me a PERSONAL policy for my COMMERCIAL vehicle. This just absolutely shocked me.

I know why this was done. I had another quote and I was deciding between the two so in order to get my business they lied to me stating that I would have full coverage for X price and wrote a personal policy as well.

I feel very manipulated and deceived. Furthermore I've been paying for nothing for a full year. I can only imagine what would have happened if I actually got into an accident that was my fault. I would not be even be covered for liability because of the logos on my van.

I filed a report with the Texas Board of Insurance but I would like to pursue legal action. What exactly can I pursue? Deceptive practices? And what kind of damages can I claim?

Thank you for your replies.

Chris

ecmst12 · #2 01-20-2009, 07:03 AM

I don't see where you have any damages since this accident was not your fault. They should correct the coverage back to the inception date and charge you the difference in premium. Yes, that will cost you MORE money. Or they should correct the coverage as of today, and charge you the difference in premium from now on.

chrisgeo · #3 01-20-2009, 07:34 AM

I can understand where you are coming from but my damages come from driving around for the last year and not being covered. Furthermore, I should at least expect a refund for the past year I've been driving around without coverage.

And unethical behavior and manipulation plays no factor into this? There has to be some grounds to file a law suit. And no, I will not be using their company anymore. My policy expires next month and I absolutely will not be renewing.

I think I am going to file for damages to my vehicle that were supposed to be covered along with deceptive practices (unless anyone has any better ideas). I'm going to file against the agent directly, not the insurance company. It will only cost me $65 give or take and I can potentially cost them thousands.

I'd really love to get her license revoked. I've been driving around with my lively hood at jeopardy for the past year. If my van burned to the ground, I would be out of luck. So with that same spirit, I want to see her license revoked.

And yes, the rude attitude and lack of any kind of customer service involving this plays a HUGE factor. My calls have been ignored and they were playing the "she's not in the office game with me".

As a business owner I bend over backwards for my clients. I don't even expect the same. But when a monumental F-UP happens like this with the assistant who wrote the policy, I expect a quick call from the agent regardless if I requested it or not. Something to say "hey, we're sorry, we care, let's make it right".

You know what the assistant had the nerve to tell me? In the middle of all of this? This has to be the thing that topped it. She had the nerve to say "well, we haven't received a copy of your degree and your policy is up for renewal so your rate is going to go up!!!" While I was dealing with a half burnt down van and an agent that didn't write a full coverage policy! Can you believe the nerve?

My professional and understanding nature turned into reports to BBB, RIp Off Report, The Texas Department of Insurance, the works!

The agent asked for it though. Today she called me (after 5 days). I explained my position and said "I don't think the Board of Insurance would like the fact that you wrote me a personal policy for my commercial vehicle very much". She said "Well if you're going to threaten me I don't have time for this". Really? No. No threats at all. Just voicing my position.

It's 6:30am and I haven't been able to sleep all night because of this crap. Plus I've been dealing with cleaning out soot off of all of my equipment and van for two days. These people really need to be more tactful in how they treat customers who are having problems and then find out when they need help, they are stuck on their own.

The thoughts just keep going through my mind... "What if the whole van burned up".. over and over and over. I would lose my house, my car, I wouldn't be able to feed my family, my savings would gone.... my entire life just up in smoke like that. Because of deceptive business practices and manipulation to get a customer who got a better rate elsewhere".

Do you see why I feel the way I feel? Imagine, you pay to cover your life, it all goes up in flames, and find out you didn't get what you thought you were paying for.

Lesson: READ ALL PAPERWORK AND HAVE AN ATTORNEY LOOK IT OVER BEFORE SIGNING! I guess good can come out of bad that way. But it still doesn't make it right.

ecmst12 · #4 01-20-2009, 08:29 AM

1. It's not going to cost her a penny because she has errors & omissions insurance which will cover her defense in any lawsuit.

2. I don't think a judge will be very sympathetic to a business owner who didn't even bother to READ her policies. I don't even think you should get a refund - you got the coverage you paid for. If it wasn't the coverage you wanted or needed, you share at LEAST 50% of the blame for that.

fcobarr · #5 01-20-2009, 11:19 AM

"What if the whole van burned up".. over and over and over. I would lose my house, my car, I wouldn't be able to feed my family, my savings would gone.... my entire life just up in smoke like that. "

"What if" scenarios/thoughts are pointless - they don't mean anything.

Zigner · #6 01-20-2009, 11:29 AM

Actually, you got EXACTLY what you paid for.

ecmst12 · #7 01-20-2009, 11:39 AM

As far as What Ifs go, IF she had been at fault for this accident, she would have a good case to have the coverage corrected retroactively, with her of course paying for the difference in premiums, so that the accident could be covered appropriately. But since that's not the case, I doubt OP is going to be jumping up and down to give the company more money, even if it would be to get the coverage she originally wanted.

chrisgeo · #8 01-20-2009, 03:21 PM

Again, thanks for your replies but I still don't see how she should be excused for deceptive and manipulative practices. I guess what I've learned here is I shouldn't be honest and admit that I didn't read it. Simply state "that is not what I was understood from reading the policy"

Or even better! "That's not the form I signed".

I'm always WAY too honest with things. I just think the world runs better with honesty. If I'm in a customers home and she doesn't want to pay say $100, for a sofa cleaning, I'll do a half ass job for $50, have her sign a form and then state "Ma'am, you signed this form. You're out of luck". God, to think of all the money I've passed up trying to do it right...

You live and you learn.

Thanks

Zigner · #9 01-20-2009, 03:22 PM

Quote:

Originally Posted by chrisgeo

Again, thanks for your replies but I still don't see how she should be excused for deceptive and manipulative practices. I guess what I've learned here is I shouldn't be honest and admit that I didn't read it. Simply state "that is not what I was understood from reading the policy"

The problem with that is that the policy is CLEAR on what it is.

ecmst12 · #10 01-20-2009, 04:19 PM

Insurance policies are written at an 8th grade reading level. There may be a few finer points of 'legalese' that could be confusing but the basic idea is crystal clear. If there is an exclusion for business use, it clearly states there is no coverage for business use. And as for full coverage, that is printed in big capitol letters right on the declarations page! You went an entire year without even glancing at the cover page of your policy, and you want to sue the agent when you didn't even suffer any damages??? But more to the point, if you tell them you read the policy but didn't see that it was a personal use, liability only policy, they are going to know you're lying. They're going to point out exactly where on the dec page it describes the coverage you purchased and did not purchase and you're just going to look even more foolish.

I love how you claim the world would be better if people were more honest, in the same breath as you say you're going to lie about failing to read your insurance policy. You are a piece of work.

The world would be better off if people would take responsibility for their mistakes. That means YOU need to take responsibility to failing to read and understand your policy. I'm sure your agent would be willing to make those retroactive changes to your coverage if you pay the difference in premium. It's inappropriate for you to ask for a refund - you aren't owed one, you received the service that you paid for.

I suspect that you got the bill for your policy, saw how much lower it was then you expected, and signed the forms as quick as you could before they changed their minds on the quote. When you SHOULD have said gee, that sounds really low, are you sure that's for all the coverage that I asked for? And then read the policy 3x over to be sure.

And of course back to the very basics of tort law - no damages, no case.