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:

1. 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.
   
2. Check to see who is on the insurance company's provider list.
   
3. Ask your medical provider and pharmacist what, if any, experience they have had with the insurance company.
   
4. Ask other employers what, if any, experience they have had with the insurance company.
   
5. 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.
   
6. 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.
   
7. 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.
   
8. 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.
     
9. Read the policy when you get it. The worst time to discover what isn't covered is after you have a loss.
   
10. 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.