“Nearly all of brokers are moral and sincere. You’ll be able to belief their phrase,” Quiggle says. “A small however disturbing minority loses their ethical compass and steals shopper premiums as a simple bailout after they fall on exhausting instances.”
An insurance coverage agent who’s stealing a shopper’s premiums often is performing out of desperation, in keeping with Quiggle. In some instances, a standard insurance coverage company is likely to be feeling aggressive strain from digital insurance coverage choices that don’t depend on companies, he says.
“They’re twiddling with their purchasers’ monetary well-being in change for short-term features to assist prop up an company that doubtless is on the borderline or is failing,” Quiggle says. “They’re cornered and so they see no different means out, so that they attain for the primary cash honeypot they’ll discover, which is their purchasers’ premiums.”
How Do You Know if Your Insurance coverage Agent is Stealing Your Premiums?
Sadly, an insurance coverage buyer doubtless gained’t notice that an agent has been stealing premiums till they attempt to file a declare, in keeping with Quiggle.
“That’s when the shopper first finds out that they’re utterly bare and don’t have any safety for what is likely to be a catastrophic declare, comparable to a complete lack of a automobile or a home hearth,” he says.
At this level, the shopper would possibly study that their coverage was canceled as a result of premiums weren’t paid or that they by no means had protection to start with.