What Do You Mean It's Not Covered: Lies the Agent Told

Yannacito misrepresented to the Cozzas that they were eligible for a Life Investors' health insurance policy for their children and also misrepresented that a policy had been issued and that coverage existed. Furthermore, Yannacito had been given similar representations from Campbell, who had contacted the home office. "Indeed, the application that the Cozzas filled out indicates that coverage is provided if the application is accompanied by the first required premium. Thus... the agent's and application's representations are imputed to the insurer," the court concluded. The court reiterated that Insurance Commissioner Smith had authority to take action against Life Investors and its agents. It cited Colorado insurance law, which stated: Whenever the Commissioner has reason to believe that any person has been engaged or is engaging in this state in any unfair method of competition or any unfair or deceptive act or practice... and that a proceeding by him in respect thereto would be to the interest of the public, he shall proceed.... "We therefore agree with the Commissioner that if a selling agent of an insurance company misstates the eligibility terms of a policy while also indicating the scope and types of coverage involved in that policy, there has been a misrepresentation of the terms, benefits, and conditions of the policy and, thus, a violation of [state law]," the court wrote. It upheld the lower court's ruling, which supported Commissioner Smith's actions and fines against Life Investors. Since the company's agents said it would cover Kim Cozza, it had to honor that promise.