Patrick McPharlin, director of the Michigan Department of Insurance and Financial Services (DIFS), issued a bulletin reminding insurance agents that the practice of insurance “sliding” is not allowed.
McPharlin defined sliding “as an agent’s failure to fully disclose all the details of, and obtain informed consent to, purchase all products and services in an insurance transaction.”
He said it has come to his attention that some insurance producers in Michigan are “engaging in the practice” of adding or charging for coverages of which insureds are not aware.
The charges for the additional coverages are often hidden in the total premium “and result in a much higher premium than that to which the customer agreed,” McFarlin said in the bulletin.
The director is authorized to take action against a producer who engages in sliding or other fraudulent practices. Penalties may include license revocation and civil fines, according to DIFS Bulletin 2015-21-INS.
Was this article valuable?
Here are more articles you may enjoy.
New Data Centers Worth $68 Billion Disrupted in US, Data Show 
Musk’s Boring Co. Working on Tunnel to Link Austin and San Antonio 
CVC-Backed Home Insurance Firm Bamboo Said to Postpone IPO 
Gemini Hacked Three Companies in First Known Breakout by Google’s AI From This Issue
