Here are
some of the most common signs that an insurance provider may
be a phony:
- The insurance company in question boasts low rates, or
offers minimal or no underwriting.
- The health plan will accept almost anyone, including those
with pre-existing or serious illnesses.
- The agent (or information they provide) claims that the
plan is covered only by stop-loss.
- The plan claims to be federal, not state regulated. (ERISA
or Union plans, for example)
- Be skeptical if the premiums seem low compared with other
health insurance plans.
- Beware of sales material and pitches that avoid the word
"insurance," or the use of certain insurance terminology
even though it operates like insurance. For instance, it
pays "consultant fees" instead of commissions, or refers
to premiums as "contributions."
- The product claims to be "fully funded," "fully insured,"
or "reinsured" but agents are not told the name of the carrier
insuring or underwriting the product.
When it comes to buying insurance,
your instincts might not always be correct. In an effort to
save money, one's judgement can become impaired, so don't
hesitate to check out each provider you deal with. It only
takes a little time, but the effort could possibly save your
business.
Tricks Of The Trade
The typical health insurance scam often moves quickly and
with much purpose. "Agents" flood the market to help generate
as many quick sales as they can. Payments can be requested
up front to help ensure they get as much money as possible
before they disappear.
After they have reached their goal, they simply
sit back and watch the monthly payments roll in, continuing
to do so until they become fearful of being caught, at which
point they often disappear to re-emerge somewhere else.
Until that time, however, some business owners
have been known to pay premiums for many years, never discovering
that their insurance was bogus until they eventually filed
a claim. |
