Peggy's Insurance Agent, Skip Towne, Convinces Her to Replace Her

Peggy's insurance agent, Skip Towne, convinces her to replace her existing health insurance policy with one that he claims is better. Peggy tells him that she will be glad to replace the policy if the coverage provided under the new one is the same or better than that provided by the existing policy. Skip assures her that coverage is equal or better under the new contract, so she changes policies. Three months later, when she becomes pregnant, the insurer denies all her claims for benefits. At that time, Peggy learns that her new policy does not provide maternity benefits, although her previous policy did. Based on information contained in the text, who should Peggy hold legally responsible for her lack of coverage?

A) Skip Towne
B) Her new insurer
C) Her previous insurer
D) The government

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free