What Types of Insurance Fraud Are There?
Fake insurance companies defraud consumers by collecting premiums for bogus policies with no intention of paying claims. These companies might offer policies at costs that are significantly lower than competitors prices or they might be difficult to reach by phone if there is a listed phone number at all. Consumers should check in advance that they are dealing with a legitimate, licensed insurer before signing an application for a policy. Your state insurance department can provide licensing information for a company or agent. For a link to your state insurance department Web site, go to www.naic.org/state_web_map.htm. Legitimate companies that are not licensed by the state to sell insurance might lead consumers to think they are selling insurance while evading state insurance regulations. A company selling a health discount plan might call the plan insurance when it is really an unregulated, non-insurance product. If you question whether a product you are offered is insurance, contact
