Scams of insurance agencies
Scams of insurance agencies
The most recent example of insurance agent fraud was in November of this month when a man, who had sold insurance to actor Tom Hanks and his wife, was sentenced to two years in federal prison for defrauding them out of hundreds of thousands of dollars. The most common scam that happens is when an agent steals your premium, and instead of using it to buy insurance, and then pockets the money. A scam like this took place just a couple of years ago in Kansas.
The most recent example of insurance agent fraud was in November of this month when a man, who had sold insurance to actor Tom Hanks and his wife, was sentenced to two years in federal prison for defrauding them out of hundreds of thousands of dollars. The most common scam that happens is when an agent steals your premium, and instead of using it to buy insurance, and then pockets the money. A scam like this took place just a couple of years ago in Kansas.
Fake Insurance Policy
Another way fraud can strike is if an agent flat out sells you a fake insurance policy, which often is accompanied by a fake insurance certificate. Or how about the agent who continually sells you coverage you never needed. One example is called churning, which is where the agent will convince you to use the value you've built up in a current policy to buy a different policy that is supposedly better, but is actually unnecessary. Or the agent might slip in extra coverage that you never asked for, but then end up paying for every month. Boca insurance agency will let you know about everything, the scams and the products as well which are helpful for you.
According to the Coalition Against Insurance Fraud the most common policies that tend to be scams are motor club memberships, accidental death coverage, and guaranteed renewable life insurance. The coalition also said some red flags to help spot a dishonest broker would be if the coverage offered is half the price of what competitors are offering, the agent wants you to sign a blank insurance form and tells you they will fill it out later, or the agent wants you to pay in cash or write the check to directly to them. They suggest you ask to write the check to the insurance company, and also take a photocopy of your check.
Finally, the agent should not bill you directly for your premiums. Bills should be coming from your insurance company and not the agent. Some things to do to protect yourself against fraud include getting multiple quotes from different insurance agents, checking if your agent has a license with your state's department of insurance, and after reviewing all of your insurance coverage, call the insurance company to make sure you are actually enrolled. Do not just take your agent's word for it. Boca Insurance agency will provide you services in the way you need.
Stealing your premiums
An agent pockets your insurance premiums instead of sending it to the insurer. Crooked agents may steal your premiums to support their business, feed a gambling or drug habit, or buy luxury goods such as cars or jewelry.
Selling phony insurance
An agent or company rep sells you fake coverage from a phony insurance company. Or the agent sells you bogus coverage using a legitimate company's name, or a name that's similar to a legitimate insurer. You might receive an official-looking policy or proof of insurance that's worthless. You could lose thousands of dollars if you suffer a loss and don't have a real policy to pay your claim. Selling coverage you don't want or need. Maybe the coverage is real, but it's expensive, unnecessary, and your current policy may already cover that risk.