What Is Sliding in Insurance and Why Is It Illegal?
Understand deceptive insurance sales practices. Learn what 'sliding' is, why it's illegal, and how to protect your policy and finances.
“Sliding” is a deceptive sales tactic where an insurance agent adds unwanted or unnecessary coverages to a policy. This practice can lead consumers to unknowingly pay for features they did not request. This article explains what sliding entails and why it is prohibited in the insurance industry.
Defining Sliding
“Sliding” is the deceptive practice where an insurance agent adds coverages or products to a policy without the customer’s full knowledge or explicit consent. These additions often result in increased premiums, which the customer pays without understanding the reason for the higher cost or the added features. Information is withheld or misrepresented to complete a sale with unrequested components.
Examples of items “slid” into a policy include accidental death riders, roadside assistance, travel insurance, or non-insurance products. An agent might falsely claim an ancillary coverage is legally required or included at no extra charge when it carries a fee. This practice misleads consumers into paying for benefits they did not request.
Why Sliding is Prohibited
Sliding is prohibited because it violates principles of fair dealing, transparency, and informed consent in financial transactions. It harms consumers by causing them to pay for coverage they did not intend to buy, eroding trust in the insurance market.
State insurance departments strictly prohibit sliding as it constitutes misrepresentation, fraud, or unfair trade practices. When agents fail to fully disclose details and obtain informed consent, it is considered an omission of material fact. Penalties for engaging in sliding can range from financial sanctions and restitution to the suspension or revocation of an agent’s license.
Identifying Sliding Practices
Consumers can identify potential sliding practices by carefully reviewing their insurance documents. A red flag might be an unusually high premium that does not align with the quoted price, or policy documents containing coverages or riders that were never discussed or agreed upon. Agents who rush through explanations, avoid direct answers, or pressure customers to sign documents quickly without review could also indicate a problematic sales approach.
It is important for consumers to thoroughly read all policy documents before signing and to ask questions about any unfamiliar terms or charges. Keeping detailed records of all communications with an agent, including quotes and discussions about coverage, can also help in identifying discrepancies.
Reporting Sliding
If a consumer suspects they have been a victim of sliding, the first step is to contact the insurance company directly to clarify policy details and attempt to resolve the issue. Gathering all relevant documentation, such as policy contracts, correspondence, and the agent’s name, is an important part of this process. Many issues can be resolved at this initial stage.
If the issue remains unresolved, the primary regulatory body to report such concerns is the state’s Department of Insurance or an equivalent state-level consumer protection agency. These departments oversee insurance practices and investigate complaints against agents and companies. Most state insurance departments provide online portals or forms for filing complaints, and prompt reporting is advisable.