Insurance policies that are dishonest and not adequately monitored can cost homeowners a lot of money. Unfortunately, some brokers commit unethical practices, usually illegal, which is what is twisting in insurance. You must be aware of and avoid insurance twisting if you wish to take advantage of the insurance offered by your broker. Insurance policies that are dishonest, inaccurate, and fail to deliver the benefits they promise to their policyholders are illegal and unprofessional. As a policyholder, you have the right to receive and evaluate all of the information provided in your insurance policy documents. If any information conflicts with what is stated in your policy or any information provided by your broker, you should have this information investigated and documented.
Insurance policies that are written and sold improperly are nothing new. For years, agents have been accused of twisting information to push a policyholder into a policy that may not benefit the buyer. In some cases, the agent creates a new policy that does not include coverage for pre-existing conditions. This newly created policy can then force the client into a situation that may result in financial harm. For example, suppose the agent sells the client a rider to replace a significant illness policy at a much higher rate than another agent's policy. In that case, the client could be subject to financial harm. Even worse, if the agent sells the rider without telling the policyholder of its exclusions, the rider will not provide coverage for the new condition.
What is twisting in insurance is often caused by brokers trying to sell a policy to a policyholder without fully understanding all coverage options. Brokers are rarely educated on all aspects of medical insurance. Sometimes they will try to convince a policyholder that they need a rider to provide them with the coverage they do not need. A professional insurer will not allow such tactics to occur.
Another cause for twisting insurance can be found when an insurance agent sells a policy to an individual with no insurance or minimal coverage. When an individual buys a term life insurance policy from an agent, the agent must disclose any exclusions. In some cases, an agent will leave out essential exclusions even if the client needs much coverage. In these cases, the insured pays the price in higher premiums because of "aging exclusions."
What is twisting in insurance also occurs when an agent tries to push a client into more coverage than their policy provides. If an agent makes this claim, the insured will be paying for coverage that they do not need. The only way to avoid what is twisting in insurance is to ask questions. Any client's question should be answered truthfully, and any false information should be promptly corrected.
The third example of twisting in insurance can be found when an agent tries to convince an insured individual to buy a more expensive policy. To do so, this agent will often tout how a policy with a higher premium effectively provides better coverage than a policy with a lower premium. Because of what is known as "age discrimination," the client will often still end up paying for the higher premium. At other times, the insured will pay more because they are considered a high-risk driver. Again, the client is left holding the bag of increased cost because the agent tried to make up for their poor driving record by including the higher premium in the paperwork. What is happening is that the insured is paying more due to what is known as "age discrimination," while the agent pocketed more due to their great sales pitch.
The fourth example of what is twisting in insurance happens when an insurer attempts to force an insured person to change their life insurance policy so that the insurer will write the policy in their name. When the policy change is made, the client will often find out that the new policy is not as beneficial to them as the old one. In some cases, the client may discover that the new insurer is better funded and thus can offer them more favorable rates than they could obtain if they continued to maintain their current policy.
There are many other examples of what is twisting in the insurance industry. Contact a consumer protection attorney today if you feel that you have been the victim of such a twisting marketing scheme. A reputable attorney will be able to help you determine whether you have been a victim of unfair trade practice or not and whether or not you should file a lawsuit against the company involved.
0 Comments