Legal Question in Insurance Law in California

what is an insurance agent responsibility i bought a new motorcycle 2 years ago it was recently stolen .my agent told me when i bought it and to this day says that my coverage would pay my bike off and replace it with a new bike of fair market value of my old bike i said i still owe on it and she told me that there is a thing called a revolving loan were i use the money that they give me for fair market value and by another bike can i sue her for telling me something that isn't true .because the money i got went straight to the bank that had the title of the bike she told me something that wasn't what i had at all or that is even offered


Asked on 2/13/10, 8:00 am

1 Answer from Attorneys

You can sue someone for anything. The question is can you win. In the situation you describe, and without questioning any of the facts or proof, you would have a cause of action for fraudulently inducing you to buy the insurance and for the inadequate insurance coverage. The two problems you face are 1) proving your case when it will be your word against hers, and 2) proving any significant damages. If you hadn't bought the insurance, the bike would still be gone, but you would still owe the bank for it. So even though you didn't get the coverage you thought, you got what you paid for, and you say yourself that the coverage you thought you had isn't even available. So your damages from her fraud would be at most the difference between what you paid for the coverage she got you and the same coverage from a cheaper insurance company. Of course if she got you the best coverage available anyway, even those damages do not exist.

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Answered on 2/18/10, 9:39 am


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