Ways to Avoid Being a Victim of Phony Insurance

Friday, November 14, 2008

Source: Arizona Department of Insurance

The best protection is prevention! You wouldn’t choose a nursing home or hire a builder without doing some homework…the same applies to insurance!

 

• Verify before you buy! Check the validity

of the insurance company and agent by

contacting the Department of Insurance:

www.id.state.az.us or (602) 364-2499 or

(800) 325-2548 outside Phoenix

(Check the exact insurance company name being

used — scam companies often use names similar

to legitimate insurance companies).

 

• Fake insurance comes in all types: health, boat,

medical malpractice, surety, business and

professional liability, long term care. It is marketed

to all types of people and businesses.

• Don’t let slick looking websites, business cards,

“official” forms, and marketing materials persuade

you that an insurance entity is legitimate.

 

• Review documentation carefully—make sure it

looks “original”, not photocopied; look for a seal

and authentic signatures.

 

• If the paperwork looks suspicious, contact the

insurance company listed to verify that a policy

was issued and call the Department of Insurance

to verify licensure.

  

• Research the insurer: contact the BBB, the

Corporation Commission, and the U.S.

Department of Labor; get financial ratings from

AM Best and other financial rating services; ask

the Department of Insurance for complaint figures

and financial information.

 

• Check out websites: Is there a physical address?

Are there names of company officers? Are there

valid phone numbers? Is there a way for you to

contact the company besides email? Don’t settle

for a P.O. Box, voice mail or email.

 

• Ask questions, keep notes about who you spoke to and when, keep copies of documents, and always

pay with a check or credit card.

 

• Research “Discount” health plans and cards carefully. They are not insurance and typically not

government regulated. “Discount” plans have been the subject of many nationwide fraud allegations.

 

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