Deceptive Practice

Published: | Updated: October 18, 2017

Definition - What does Deceptive Practice mean?

Deceptive practices are business practices intentionally designed to mislead or defraud. These practices are illegal and any insurance company, agent, or policyholder who attempts to participate in them can face legal punishments.

Insuranceopedia explains Deceptive Practice

There are many different types of deceptive practices. False advertising is one of the most common and well-known examples of it. With false advertising, an insurance company might advertise one thing, but in reality never deliver on the promises made in the advertisement.

Policyholders who believe that they have been the victim of deceptive practices can sue. If a company is found guilty of deceptive practices, it could be fined heavily and potentially face other consequences.

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