Deceptive Practice

What Does Deceptive Practice Mean?

Deceptive practices are business actions deliberately intended to mislead or defraud. These practices are illegal, and any insurance company, agent, or policyholder involved in them can face legal consequences.

Insuranceopedia Explains Deceptive Practice

There are various types of deceptive practices, with false advertising being one of the most common and well-known examples. In cases of false advertising, an insurance company may promote a product or service but fail to fulfill the promises made in the advertisement.

Policyholders who believe they have been victims of deceptive practices can file a lawsuit. If a company is found guilty of such practices, it may face substantial fines and other potential consequences.