Often, insurance carriers focused on profits will allege policyholder misrepresentation or fraud was committed at the inception of an insurance contract, during the coverage period, and/or when making a claim in order to avoid paying claims. Most often, policyholder misrepresentation at inception is cited as an erroneous and invalid reason an insurance carrier uses to deny paying out on an otherwise valid claim.
When the insured makes a claim for property damage under their insurance policy, a carrier may try to find something suggesting the insured misrepresented information when they took out the policy. The insurer may argue that if the insured had said or written things differently when taking out the policy, it would have acted differently and/or not insured them at all. Our insurance lawyers are here to tell you not to be afraid of this allegation. Insurance misrepresentation and fraud is a serious problem, but it is never, ever appropriate for an insurance company to falsely assert fraud in order to gain an advantage on a claim. Unfortunately, we see this tactic sometimes, and we have been able to guide clients through these stressful situations.
Insurance companies stand at a big advantage over their policyholders during the claims process. They will use their extensive resources to minimize their liability in any way possible. The insurance lawyers of Raizner Law only represent policyholders, never the insurance companies.
Insurance Agency Misrepresentation
Various parties involved in insurance transactions can be alleged to have committed fraud, including insurance applicants, policyholders, third-party claimants, and professionals who provide services to claimants. An agency can also commit insurance fraud when an insurance company employee knowingly tells a consumer false information in order to get them to purchase a policy. Some common insurance agency misrepresentations can include:
A representative providing the wrong information regarding coverage and/or cost despite understanding the implications.
An agent claiming the policy contains coverages that it in fact does not have.
Including arbitration clauses in policies without clearly disclosing these provisions to the policyholder.
Holding Insurance Carriers Accountable
While some policyholders may have intentionally withheld crucial information in order to acquire a policy they were otherwise unqualified for, most policy applicants are truthful. Insurance companies use every excuse in the book to justify denying policyholders’ valid property damage claims. If your insurer is alleging you misrepresented facts at policy inception as a way to deny your claim for damages, contact the insurance lawyers of Raizner Law today.