For Nevada consumers, insurance has become a worrisome issue. When a person or company has an insurance policy, they expect the insurer to come through and cover for losses. However, some insurers and agents use underhanded tactics to trick consumers and find ways not to pay the full amount or to not pay at all.
They might even try to get a consumer to needlessly change from one policy to another for their own profit. One somewhat understated way this can occur is through insurance “twisting.” Under state law, this is illegal and those who were victimized by it should understand the options available to them.
Recognizing insurance twisting and how it can harm consumers
The fundamental problem with insurance twisting is that it misrepresents insurance options to try and get the consumer to change their policy when it is not necessarily advantageous to do so. Companies and agents do this to try and increase their profit. In general, it does not provide the policyholder with coverage that benefits them. In many instances, it makes their coverage worse than it was originally.
This is a form of fraud on consumers and can be costly to them. Policyholders could end up paying more for their premium for the same coverage they had before or even less coverage. The new policy could reduce the benefits they had under the old policy. The coverage itself could be inadequate for their needs.
When insurance twisting takes place, the agent selling the policy is looking out for their personal and financial interests instead of what would provide the consumer with the best possible policy for their personal and professional needs.
Hold agents and insurers accountable for alleged wrongdoing
People who take out an insurance policy for any reason do so under the expectation that they will be compensated if they suffer loss. If there is any type of misdeed by the agent or insurance company, it is vital to make sure they do not get away with their behavior. For help in pursuing insurance law violations, it is wise to have help in holding them accountable and being fairly compensated.
