Thursday, January 17, 2008

Can I Sue My Insurance Customer?

Recently I wrote a home insurance policy on a customer who told me he had no trampoline on his property. He signed the home insurance application that stated andquot;No trampoline on the propertyandquot;. When the insurance company inspected the property, guess what? - they found a trampoline in the customer's back yard. Prior to the time the insured received the andquot;Notice to Cancelandquot; from the insurance company, there was an accident involving the trampoline, which seriously injured a neighbor's child. The customer called the insurance agent to report a claim and the agent advised the customer that since there was a andquot;material misrepresentationandquot; on the original application, the insurance company intended to cancel the policy back to the date of issue (as though it never happened). The customer was very angry and advised the agent that he was going to see his attorney. A few days later, an article appeared in the local newspaper which actually andquot;slanderedandquot; both the insurance company and the agent. Can the agent sue the customer for andquot;slanderandquot; or andquot;defamation of characterandquot;?

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