Driver Accuses Insurance Company Of Deceptive Sales Tactics

This case involves a three-car collision in Indiana caused by a negligent driver. The driver was texting while approaching an intersection and ran a red light causing a side-impact collision with a sedan and a rear-end collision between the sedan and the SUV behind it. The driver of the sedan was seriously injured by the crash. The negligent driver’s insurance company admitted that the insured driver was at fault for the accident. Subsequent to the accident, however, the insurer denied that their policy included bodily injury liability coverage. The insured party alleged that the sales strategy the insurance company used to quote bodily injury coverage premiums and total policy premiums was improper. She further claimed that the company deliberately concealed that uninsured motorist coverage automatically comes with bodily injury coverage. An expert in automotive insurance sales was sought to review the facts of the case and discuss whether any deceptive sales tactics were used.

Question(s) For Expert Witness

1. Please briefly describe your experience in auto insurance sales.

2. Are you familiar with any deceptive sales tactics that insurance companies may sometimes use?

Expert Witness Response E-066030

I have been a licensed insurance agent since 1995 and I have worked for many types of agencies. I am familiar with insurance sales practices and have seen both ends of the insurance sales spectrum - from the fully diligent to the quick in-and-out sale. From the description of the scenario provided, it is hard to determine who is at fault in this BI/UM issue. Usually, that would fall back onto the agent and would be subject to a claim against their errors and omissions insurance. I am familiar with the ways an agent would sell, but the insurance company is a different animal. It would depend if the at-fault party obtained their insurance from an agent representing a company (where the error and omissions would fall on said agent), or if it was a direct sale where the client purchased the insurance online or over the phone from a call center. However, when there is a call center involved, some states still require that the sales agent on the phone have an insurance license.