Preventing Insurance Fraud
Unfortunate news out of Georgia today: two insurance agents in Gainesville, Ga. have been charged with fraud after they kept roughly $56,000 from clients rather than turning the premium dollars over to their contracted insurance companies.
One of the agents, who kept approximately $20,000 in premium dollars, was also allegedly selling insurance policies without a valid insurance license.
The story, courtesy of the Insurance Journal, points to one of the most avoidable forms of insurance fraud. And, lucky for us consumers, there are plenty of resources available to help us avoid being scammed by shady agents.
Your state Department of Insurance (DOI) is a great resource that tends to be overlooked by consumers. The DOI keeps track of insurance companies and agents in your state, particularly when it comes to correct licensure. You can call the DOI or visit them online to make sure your agent is licensed to sell insurance policies.
Other consumer resources include insurance rating companies like AM Best and Weiss Ratings, which allow you go online and check the customer service rating and financial solidity of most insurers. The customer service rating will reflect things such as consumer complaints and larger legal issues like fraud—which may dissuade you from buying a policy from the insurer.
Remember, both of these resources are available online, so be sure to take advantage of these easy-to-use sites. Making sure you're dealing with a reputable insurance company and licensed agent may seem like a hassle but it can save you heartache and financial stress down the line.
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