| Insurance fraud. It happens daily. There are a | | | | their level best to avoid such circumstances, it can |
| number of bogus health insurance companies and | | | | still happen. Worst of all, you could be on the hook |
| agents in Dallas, Houston or anywhere else in | | | | for a wide range of costs and expenses that you |
| Texas who will take your money and run. So, | | | | thought your insurance was covering. |
| before you purchase health insurance for your | | | | The typical health insurance scam moves pretty |
| employees or your business, make sure the | | | | fast. Scam agents flood the market to help |
| insurance company you're dealing with is | | | | generate as many quick sales as possible. Often, |
| legitimate. Start by checking your insurance | | | | payments will be requested up front to help |
| agent's credentials to be sure he or she is licensed | | | | ensure they get as much money as possible |
| to sell insurance in Texas. | | | | before they disappear. After the fake agents |
| An insurance scam artist may act without a | | | | have reached their goal, they simply sit back and |
| license or use fictitious documents to appear | | | | watch the monthly payments roll in. Then, just as |
| legitimate. The following information will provide | | | | quickly as they appeared, they are gone, only to |
| what you need to make the right decision when | | | | re-appear later under a new name and a new |
| purchasing health insurance for your business or | | | | scam. The individual or company may never know |
| individual employees. The scammers are out there | | | | they've been duped until, after thousands of |
| just waiting for you to take the wrong step. | | | | dollars in premiums have been paid, they then try |
| Make sure you know what's waiting for you | | | | and file a claim. |
| before you get scammed out of a lot of money. | | | | It's important to know what to look for. Here are |
| In the last couple of years, the Texas | | | | some of the most common signs that an |
| Department of Insurance (TDI) has shut down 51 | | | | insurance company may be a scammer: |
| agents and 10 companies for selling unauthorized | | | | They claim extremely low rates, or offer minimal |
| insurance. There are currently 376 open | | | | or no underwriting. |
| investigations against suspected unauthorized | | | | The health plan will accept almost anyone, including |
| insurance scams in Texas. | | | | those with pre-existing or serious illnesses. |
| The first thing is to check to see if a potential | | | | The plan claims to be federal, not state regulated. |
| company is authorized to sell insurance. Then | | | | (ERISA or union plans, for example) |
| check to see if your insurance agent or agency is | | | | Sales pitches that avoid the word "insurance" or |
| licensed. If you fail to find your company or | | | | the use of certain insurance terminology even |
| insurance agency, don't assume it's unauthorized. | | | | though it operates like insurance. For instance, it |
| Check with your agent for more information. Or | | | | pays "consultant fees" instead of commissions, or |
| verify by calling TDI's toll-free Consumer Helpline | | | | refers to premiums as "contributions." |
| weekdays between 8 a.m. and 5 p.m. at | | | | The product claims to be "fully funded," "fully |
| 1-800-252-3439. Insurance company data is | | | | insured," or "reinsured" but agents are not told the |
| usually updated at 7 a.m. each business day. | | | | name of the carrier insuring or underwriting the |
| Businesses, school districts and individuals are | | | | product. |
| bilked out of thousands of dollars each year by | | | | Sometimes the path may seem clear and the |
| scam artists who misrepresent themselves as | | | | choice easy, but in an effort to save money, |
| insurance agents. So, while the search for | | | | there may be some things that aren't clearly |
| affordable health insurance can be a daunting task, | | | | visible at first glance. So how can you avoid the |
| don't blindly follow an agent. But did you know you | | | | scammers? Check out each insurance company |
| run the risk of purchasing a phony policy even if | | | | and agent you deal with. It only takes a little |
| you work with a legitimate agent? At times, even | | | | extra time, but the effort could possibly save you |
| experienced agents can unknowingly sell illegal | | | | headache, heartache, and thousands of dollars |
| insurance products. Though honest agents will do | | | | down the road. |