Legal Question in Consumer Law in Colorado

Went thru Connect 4 Health 2015 for health ins. last Feb, used agent listed on C4H website. She used my 2014 unemployment income as my 2015 income when she filled out my app for insurance, to base my tax credit on. Knowing full well my 2015 income would be 22.500, as by Feb 2015, I was withdrawing $1800/mo from IRA to live on for the year. I've no idea why she knowingly chose to use incorrect income for 2015, and now I'm STUCK paying IRS for underreporting by $4000! Neither C4H, nor this agent are accepting ANY responsibility for this error..and I could conceivably lose my house over this gross error on their part. What recourse do I have..or are they just allowed to put down any old figure as estimated income, and the consumer gets to just make up for their error?


Asked on 12/21/15, 3:42 pm

1 Answer from Attorneys

Stephen Harkess Colorado Legal Solutions

In theory, you can sue an insurance agent for negligence, but it would likely cost more to pursue a lawsuit than you could possibly win. Since, if your income had been calculated correctly, you would have had to pay the $4,000 that was not withheld, your only actual losses are the penalties and interest charged by the IRS. It is hard to imagine that this amounted to more than a couple hundred dollars on a $4,000 obligation. You could try suing the insurance agent for negligence, but you would need another insurance agent to testify as to the appropriate standard of care. That alone would likely cost more than you could win.

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Answered on 12/21/15, 5:26 pm


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