If you purchase an
insurance policy through an unlicensed company, you are very
likely to find that you have no coverage when a claim occurs.
To avoid falling into these scams, you should:
- Check to see if the company is licensed
in Nevada by contacting the Nevada Division of Insurance.
Even if the insurance company claims to be exempt from
state regulation or is utilizing a licensed Third Party
Administrator have your proposed plan reviewed by the
Division of Insurance to determine if the company is really
exempt. Companies that are licensed by the state are required
to provide annual statements, which allow the Insurance
Division to assess a company's continued ability to pay
claims, and to take corrective action in advance of potentially
devastating problems.
- Check to see who is on the insurance company's
provider list.
- Ask your medical provider and pharmacist
what, if any, experience they have had with the insurance
company.
- Ask other employers what, if any, experience
they have had with the insurance company.
- Confirm that your insurance agent is selling
you a state licensed insurance product. If you suspect
an insurance agent is trying to sell you a fraudulent
product, contact the Insurance Division.
- Ensure you are dealing with a reputable
insurance agent. If the person trying to sell you the
coverage says he or she doesn't need a license because
the coverage isn't insurance or is exempt from regulation,
be wary.
- Ask your agent for the name of the insurer
and check the paperwork you receive to see whether it
names a licensed insurer that is fully insuring the coverage.
- Make sure the agent and company are legitimate
before you pay for insurance.
- Never pay cash.
- Get a receipt for all payments.
- Be sure the receipt shows your policy
number, date of payment, period of coverage, and name
of insurance company providing the coverage.
- Read the policy when you get it. The worst
time to discover what isn't covered is after you have
a loss.
- Check the National
Consumer Information list of State Enforcement Activities
Against Unlicensed Insurers.
If you suspect you have been the victim of
an insurance scam, contact the Division
of Insurance immediately. |
