Insurance Sliding: What You Need To Know

Sliding in insurance is a deceptive and predatory tactic used by insurance agents to sell unnecessary coverage to clients. It involves misrepresenting the scope or cost of an insurance policy, failing to disclose all the details, and obtaining consent to purchase additional products or services. For example, an insurance agent may claim that car insurance is included in a homeowner's policy for free when, in reality, there is a separate premium for it. Sliding is considered unlawful and unethical, as it involves deceiving clients and can result in them paying higher costs than expected. To avoid sliding, it is important for individuals to have a complete understanding of their insurance policy and to question and research any additional coverages or charges.

Sliding is an unethical practice where agents sell unnecessary coverage to clients

For example, an insurance agent may claim that roadside assistance is included in an individual's insurance plan when it is not, or that additional coverages are required on top of the original insurance purchase. They may also fail to disclose or explain all the coverages and their associated costs, making it difficult for the client to understand what they are paying for. In some cases, agents may even charge individuals for additional products without their consent. These practices are considered deceptive and unfair, as they prevent clients from making informed decisions about their insurance coverage and can lead to financial harm.

The State of Michigan's Department of Insurance and Financial Services defines sliding as:

> “an agent’s failure to fully disclose all of the details of, and obtain informed consent to, the purchase of all products and services being included in an insurance transaction.”

Sliding is not only unethical but also illegal in some jurisdictions. In Florida, for instance, sliding is specifically prohibited under the state's Unfair Insurance Trade Practices Act. The Florida Office of Insurance Regulation has reminded insurers that sliding violates this Act and that they are liable for the actions of their agents who engage in sliding. Similarly, in Michigan, the case of DIFS vs Sinan Jamil, Prostar Insurance Agency, Inc. served as a reminder that sliding violates the duty of good faith and fair dealing.

To avoid being a victim of sliding, it is essential to obtain a complete understanding of your insurance policy. Know what types and amounts of coverage you have purchased and their associated costs. If you are unsure, consult another agent or broker, or contact your insurance carrier directly. It is also crucial to question everything and compare quotes from multiple providers to ensure you are getting a fair and honest deal.

It is a deceptive tactic that takes advantage of clients' lack of knowledge

Sliding in insurance is a deceptive and predatory tactic used by insurance agents to take advantage of their clients' lack of knowledge. It involves misrepresenting the scope or cost of coverage to a consumer, often by including unnecessary or unwanted charges that benefit the agent but are detrimental to the client. This practice is unethical and unlawful, and it takes advantage of the client's trust in the agent.

In life insurance, for example, agents may try to sell coverage that the client does not want or need by including it in a package at an extra charge. This is done to increase the agent's commission rather than for the benefit of the client. Similarly, in property insurance, an agent may claim that car insurance is included in a homeowner's policy for free when, in reality, there is usually a separate premium for it. This is a deceptive tactic that preys on the client's lack of understanding of insurance policies and their trust in the agent's expertise.

The State of Michigan's Department of Insurance and Financial Services defines sliding as:

> "an agent's failure to fully disclose all the details of, and obtain informed consent to, the purchase of all products and services being included in an insurance transaction."

This definition highlights the deceptive nature of sliding, where agents withhold information or mislead clients about the true cost and scope of their insurance coverage. It is a violation of the duty of good faith and fair dealing that an insurer owes to its insured.

To prove that an insurer engaged in sliding, a client must demonstrate that the agent did not disclose all essential information, that the client relied on this information when purchasing insurance, and that they suffered damages as a result. Obtaining a complete understanding of one's insurance policy is key to avoiding sliding and ensuring informed consent.

Insurance sliding often involves misrepresenting the scope or cost of coverage

Insurance sliding is a deceptive and predatory tactic used by insurance agents to the detriment of their clients. It involves agents failing to disclose all the details of an insurance transaction and obtain informed consent for the purchase of all products and services included. This results in the consumer being unaware of all the charges associated with the insurance premium, leading to a higher total cost than expected.

One common example of insurance sliding is claiming that roadside assistance is part of an individual's insurance plan when it is not, or that it is necessary to purchase it when obtaining auto insurance in certain states. Other examples include failing to disclose, explain, or break down all the coverages associated with a policy and their costs, as well as misrepresenting the actual cost of the insurance coverage.

Insurance sliding is considered a fraudulent and unethical practice, as it involves misrepresenting the scope and cost of coverage to consumers. It is often done to increase commissions rather than benefit clients. This practice is illegal and can result in penalties for those who engage in it, including probation, suspension, revocation of licenses, or fines.

To prevent insurance sliding, consumers should be aware of all the charges and coverages included in their insurance policy. They should carefully review the policy documents, ask questions, and seek clarification from the insurance agent to ensure they understand the scope and cost of their coverage. Additionally, consumers can report suspected cases of insurance sliding to the relevant authorities, such as the Department of Insurance and Financial Services, to protect themselves and others from deceptive practices.

It can also involve failing to disclose all details and obtain informed consent

Sliding in insurance is a deceptive and predatory tactic used by insurance agents to the detriment of their clients. It is an unethical practice in which agents try to sell customers coverage that they do not want or need by including it in a package. They "slide" it in at an extra charge to increase their commissions, rather than for the benefit of their clients.

Sliding involves failing to disclose all details and obtain informed consent. This means that an insurance agent does not fully disclose all the details of an insurance policy and does not get consent to purchase all the coverages or products being included in the sale. For example, an insurance agent may suggest that there is a law that requires the customer to purchase car insurance when they purchase insurance for their home. Or the agent may claim that car insurance is part of the coverage included in the homeowners policy for free when, in reality, there is usually a separate premium for it.

In some cases, the benefit to the customer can be that they are getting more coverage than they thought. However, the drawback is that this additional coverage is not included or free, as it has a different premium. For example, an agent may add rental car coverage to a policy to win a sales award, explaining that it is included in the policy. In reality, there is a separate line-item premium for this coverage. If the customer owns multiple vehicles and does not need rental car coverage, they likely would have rejected the coverage and premium if it had been adequately disclosed.

To prove that an insurer violated insurance agency law with sliding insurance, an insured must prove that:

• The agent did not disclose all the essential information about a policy or product.
• They relied on that information in deciding whether or not to buy the insurance.
• They suffered damages as a result.

The materiality of the undisclosed information is crucial in determining whether an insurer has breached its duty. Agency law bars an insurance company from charging for extra coverage that the insured has not agreed to purchase. Additionally, an insurance company cannot charge for coverage without the consumer's informed consent.

Sliding may be motivated by personal incentives for agents, such as higher commissions

Sliding in insurance is a deceptive and predatory tactic used by insurance agents to sell unnecessary coverage to clients. It involves agents misrepresenting the scope or cost of insurance coverage to dupe consumers into paying for additional products or services they do not need or want. This practice is often motivated by personal incentives, such as higher commissions or bonuses for selling products beyond the original policy.

Insurance agents who engage in sliding may receive higher commissions for selling add-on products that are not included in the initial policy. This creates a financial incentive for agents to push unnecessary coverage onto their clients. For example, an agent may receive a higher commission for selling a homeowner's policy with bundled car insurance, even if the client does not require or consent to the additional coverage. By doing so, the agent increases their commission without regard for the client's best interests.

In some cases, insurance companies may offer bonuses to agents who bring in certain types of business. This can motivate agents to engage in sliding practices to meet specific targets or qualify for these bonuses. For instance, an insurance company might incentivize agents to sell a particular add-on coverage by offering a bonus for each additional policy sold. Agents, driven by the desire to increase their earnings, may then resort to sliding to achieve these goals.

The practice of sliding is not only unethical but also unlawful in many jurisdictions. It violates the duty of good faith and fair dealing that insurance agents are expected to uphold. To avoid falling victim to sliding, consumers should seek a comprehensive understanding of their insurance policy, question anything unclear, and compare quotes from multiple providers to ensure they are getting a fair deal.

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