CIAS
♦ The files of state and federal law enforcement and Better Business Bureaus across the U.S.A. are bulging with insurance agent fraud cases and complaints. Here are the most common of these white collar crimes perpetrated by “licensed” insurance agents:
Selling Coverage You Don’t Require: You get sold expensive and unneeded coverage that your present policy already covers. Most commonly seen unrequired coverage are (1) Getting victims to use the built-up value of their present whole life policy to purchase a superior policy. This is done despite their present life coverage is excellent. The scamming agent nails a nice commission, yet the victim needs to build up cash value again. (2) The agent pushes you to change policies by “accenting” the alleged downside of your policy. You will hear worse case scenarios. (3) The agent sneaks in extra coverage you never requested for which you wind up paying. Most commonly abused by scamming agents are accidental death coverage, auto club memberships, and guaranteed renewable life insurance. (4) Victim is pushed into making worthless investments in “insurance-like” instruments. Be aware of “viaticals”. These investments in life policies get taken out on sick or terminally ill people. Another common insurance agent fraud is the abuse of promissory notes that often don’t exist.
Padding Home and Property Insurance with Non Existing Items: Often perpetrated on elderly persons by scamming agents, non existing items on manifest lists run up the bill and often go undetected.
Selling Fake Insurance: You go to a “licensed” insurance agent working for a major insurance company and they switch you to a bogus insurance policy from some nonexistent company. The policy is camouflaged by a name sounding similar to an actual insurance company and all the official looking documents. Trouble is when you go to get paid off, there’s nothing there to pay your claim.
Pocketing Premiums: A popular fraud used by crooked insurance agents is pocketing your insurance premiums instead of sending it to the insurance company.
CLUES YOU ARE DEALING WITH A INSURANCE AGENT SCAMMER
• Check with your Better Business Bureau or Consumer Affairs Agency to see if your “agent” has a record of complaints.
• Is you agent and his company licensed in North Carolina?
• Does your agent seem evasive or calculating when you ask questions?
• Always know exactly what your policy covers or doesn’t cover.
·• Are they offering a policy that seems far lower in than competitors? Know the regular price range.
• Never buy insurance unless all documentation is completely filled out.
• Know that a fair number of lowlifes are attracted to insurance sales as they are to used car sales and telemarketing, so buyer beware.
• If something doesn’t seem on the up and up with your agent, get a second opinion from a trusted advisor or a friend savvy about insurance.
• Always send in your premiums with a money order and check to your insurance company. Demand a receipt. Keep a copy in your records.
• Back off fast if your “agent” wants to be paid in cash or if premium installments are billed directly to him instead of the insurance company.
• Immediately contact your insurance company if you haven’t received your policy within 60 days.
