Insurance Agent Liability Claims
Take a moment to imagine this scenario. You sustain a devasting loss to your home or business from an unexpected event. However, when you go to file a claim your insurer informs you that you were never covered for that particular peril or occurrence in the first place. This is when you realize the insurance agent who sold you the policy was acting negligently and failed to inform you of important details regarding your policy benefits.
Insurance agents have a duty to costumers set forth by Texas law. In Texas, an insurance agent must obtain the insurance coverage requested by the client or, if unable to do so, they must inform the client. Failure to do these acts could result in the insurance agent being liable for your damages.
If you are seeking to file a claim against an insurance agent, then it’s important you gain experienced legal representation to fight on your side.
Attorney for Agent Liability Claims in The Woodlands, Texas
Did an insurance agent give you false information or failed to secure insurance coverage that you requested or was promised? If so, it’s important you have qualified legal representation to assist you. The attorneys at LeMaster & Ahmed PLLC understand the complexities of insurance law and can use their knowledge to fight for your case.
Call us now at (888) 306-2119 and we can set up your first consultation absolutely free. During the appointment, our attorneys will sit with you to discuss your case in further detail.
The attorneys of LeMaster & Ahmed PLLC represent clients in agent liability matters all over Texas, including Collin County, Montgomery County, Harris County, Dallas County and Galveston County.
Overview of Agent Liability Claims in Texas
- The Duties of an Insurance Agent in Texas
- Common Ways Your Insurance Agent Can Be Negligent
- Damages for Insurance Agent Liability
- Additional Resources
The Duties of an Insurance Agent in Texas
Insurance agents can be independent or work for a company selling a variety of insurance for property, health, disability and more. No matter who they work for, all insurance agents must uphold their duties of care to ensure their clients are informed to make the best possible decision. Agents who fail to support these duties could be considered negligent and held liable for it as a result.
Some of the following duties an insurance agent includes, but are not limited to:
- Duty to Procure – An insurance agent agreeing to obtain insurance has the legal duty to obtain the requested coverage and if the agent cannot do so to notify the client.
- Duty to Keep Insured Informed – Insurance agents must inform their clients so they can remain safely insured.
- Duty to Explain Terms and Coverage – When an insurance agent agrees to apply for insurance on behalf of the client, the agent has a duty to explain the terms of the application form or otherwise inform the client of what coverages are included in the application. If the client has a special relationship with the insurance agent, the agent may also have a duty to determine the client’s insurance needs, to counsel the client and procure the appropriate coverage.
- Duty to Review Policy – Insurance agents are obligated to review policies to ensure the insurance coverage obtain is consistent with the coverage requested. To do so, the insurance agent needs to carefully review the policy upon receipt.
Common Ways Your Insurance Agents Can Be Negligent
When you’re filing a claim against an insurance agent, you are basing it on the grounds of negligence. The list below provides examples of ways your insurance agent can act negligently.
- Failing to inform the client that the requested insurance policy was not procured
- Misrepresenting the type of coverage the client was receiving under the policy sold
- Retaining the premiums paid by the client and owed to the insurer
- Failure to renew coverage or failing to notify the client that coverage was not renewed
- Improperly advising the client about the type of coverage needed or provided
- Misrepresenting the type of insurance they can offer
- Failing to pass on communication from the insurer that was intended for the client.
Damages for Insurance Agent Liability in Texas
If you are successful with your claim, the courts may grant you a monetary award. This award will reflect the damages resulting from the agent’s negligent acts. It can be composed of three types of damages: economic damages such as the benefits the client would have received if the appropriate insurance coverage was obtained, non-economic damages, and then finally punitive damages that serve to punish the defendant from repeating this behavior in the future.
TDI Enforcement Actions – Visit the official website for the Texas Department of Insurance to learn more about enforcement actions made to insurance agents who are acting negligently. Access the site to learn more about disciplinary orders, the disciplinary board and more.
How Should I Choose an Insurance Agent? – Visit the official website for the Insurance Information Institute (III) to learn more about the duties of an insurance agent, agent designations, and signs of an untrusted insurance agent.
The Woodlands Lawyer for Agent Liability in TX
If you feel as if your insurance agent’s negligent actions are the reason you weren’t covered, then it’s imperative you contact a seasoned insurance attorney. Our lawyers at LeMaster & Ahmed PLLC understand the intricate details of the insurance agent’s duties and how they could be held labile.
Contact us at (888) 306-2119 to set up your first appointment free. We will sit with you and answer all your legal questions. We can be found practicing throughout the greater Montgomery County area including Conroe, The Woodlands, Magnolia and Willis.