agent not providing insurance, but still billing escrow

[soldiermedic]

What is the name of your state? Texas. I swicthed insurance comepanies because the rate doubled at renewal time. The new agent that I went with billed my escrow account in January for $673, the amount for coverage. A coupke of months went by and I still had not received a policy. I called the agent in April and she stated that they had not recieved payment and that was the reason why I had no policy. I called the mortage company and they faxed a copy of the cancelled check to the agent. She then changed her story and told me that she'd send me proof of insurance. A couple of days later, I got a binder in the mail, but it was for an entirely different comapny and for less than the $673 that I paid. Also, the policy was dated for April. I told the agent that I wanted a refund on the difference. They refused. Also I found out that the agant had billed my escrow had been billed again on April 14th for another $71. A month later I get a cancellation leter from the new insurance agent for non-payment. I have been without homeowners insurance for four months and they are refusing to return the money. I now have insurrance through another agent, but my question is when I sue them, are there any other damages that I am entitled to?

 

[tammy8]

Sounds like you were not accepted with the first company that the agent tried to afford you coverage through. Find out why. Reasons for not affording coverage include but not always, CREDIT (one of the biggest factors in our state and our state tends to follow Texas's guidelines), prior insurance company (standard vs non standard company), past claims YOU filed or past claims filed at the home you are in.

 

[CIAA]

First of all, it may be dependent on what the binder said and what happenedwith your escrow payments. I don't think I've ever heard of a mortgage company paying "monthly" premiums out of an escrow account, although I suppose it could happen in some finance arrangements.

Texas allows consumers to make claims against insurance companies, agents, banks, finance companies, etc., under the Deceptive Trades Practices Act (DTPA) for claims including "failing to provide goods and services of a kind and quality that the consumer has a reasonable right to expect". This laws allow for treble damages and attorney's fess to the prevailing consumer. Try discussing with an attorney.

We are not attorneys and do not give legal advice or legal opinions. Any opinions or comments in our response are based solely on our insurance administration and claims experience and should not be regarded as a substitute for professional legal advice.