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Material Misrepresentation without the Misrepresentation

Material Misrepresentation without the Misrepresentation, FL
Some low-budget insurers target segments of South Florida’s population where English is a second language. The scam by insurance companies works as follows:
 
First, the individual goes to an insurance agency to obtain PIP insurance for their automobile. The insured pays their premium and believe they have automobile insurance to cover their medical expenses if they are injured in an automobile accident.
 
Upon getting in an automobile accident and seeking medical treatment, the insurance company sets up an Examination Under Oath (EUO), and asks the insured all sorts of questions. The questions revolve around some issues ancillary to the insurer’s purpose for the questioning, such as the medical treatment and what happened to cause the accident. The real purpose of the EUO is to engage in post-loss underwriting.
 
Post-loss underwriting is a practice in which the insurer investigates the application for insurance after an insurance claim. The insurer asks questions about prior accidents and household members. If they found out that something was not disclosed on the insurance application, they claim there is a “material misrepresentation” and rescind the insurance policy. The insured’s medical bills are never paid for, and it is as if there was no insurance in the first place.
 
Post-loss underwriting is an illegal practice in many states. However, this reprehensible practice is still legal in the form of Florida. What this practice allows insurers to do is to collect premiums and make money off those premiums. Despite having many tools accessible to them, the insurer does not verify any of the information obtained by their agents unless and until there is a claim by the insured. Once there is a claim, the insurer seeks to rescind the policy.
 
This practice seeks to guarantee that the insurer does not have any risk. The insurer collects premiums on policies where there are no claims and does not pay out on systems where there are claims. This guarantees maximum profits for these predatory insurers.
 
The majority of the time, these scams target some of the minority communities in South Florida. These insurers have targeted our Haitian and Hispanic communities predominantly.
 
Our firm has discovered the prevalence of fraud by these insurers and their agents in procuring insurance applications and improperly rescinding insurance policies. Often, the insurer is lying about household members. They “discover” live with the applicant for insurance. Other times, none of the questions on the application have ever been asked of the insurance applicant. Much of the time, the applicant for insurance does not even speak English.
 
If you have had any claims denied for material misrepresentation, please contact Attorney Lyle Masnikoff or Attorney Kevin Davies at
(877) 817-4127, so that we can fight for your rights.
 
Lyle Masnikoff & Associates, P.A.
1645 Palm Beach Lakes Blvd #550
West Palm Beach, FL 33401
561-598-7120
www.workerscompfl.net
 

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