What are our rights if an insurance company owner/broker took a monthly premium out of our account monthly but now we find out that he never paid the premiums?

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What are our rights if an insurance company owner/broker took a monthly premium out of our account monthly but now we find out that he never paid the premiums?

Major dental work was performed several times. Today we just found out the broker never paid the insurance company and the policy was cancelled, although premiums were still deducted from my checking account. We paid the dental company what the insurance didn’t cover. Are we still liable for anything our insurance might not have paid? We were in the dentist’s office several times after the cancellation but and were never told there was any kind of problem.

Asked on January 16, 2016 under Insurance Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

1) You are liable to the dentist for the the full amount of the dental work/services--when insurance doesn't pay for whatever reason, the patient has to. If you don't pay, you could be sued for the money.
2) You can sue the broker (both the broker business and the specific employee you were dealing with there, if they are not the same person) to get the greater of a) the amount you have to pay for medical care but which should have been paid by insurance, had the policy not been cancelled; or b) the return of all premiums you paid. They would be liable under one or more of a--
breach of contract theory: not fulfilling their obligations to you under any agreements or contracts
profesional negligence: being unreasonaby careless and so costing you money
theft (also known as "conversion") if somene deliberately pocketed your mone without paying the premiums


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