If I told my agent that I wanted to move forward with a homeowner’s insurance quote but later switched companies, what is my financial obligation?

She said that she would email me the documents that would need to be signed. I found a better policy with another company before receiving any documents to sign. They did send me a declarations page but nothing to sign. I informed her a month later that I found another carrier. She is telling that I am still responsible for 25% of the annual premium. I informed her that I did not receive any documents to sign, as she had originally stated. She said that they don’t need a signature. Do I still owe this?

Asked on November 5, 2014 under Business Law, Texas


B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

They don't have to have a signature, but they still have to have something to bind you to a contract.  Many times emails and other eletronic documents will serve as electronic signatures.  If all you asked for or authorized was a quote, then you are not liable for the 25%.  You may want to contact the carrier directly and advise them of the misrepsentations being made by one of their agents. 

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