Requested News Article
New Laws Sees Rise in Insurance Fraud
With the health reformation legislation that was passed not too long ago, many State insurance regulatory departments have discovered and are reporting on a new type of scam that is sweeping across the U.S. The Insurance Division of The Oregon Department of Consumer and Business Services recently published a press release detailing this relatively new type of scam. The press release reports, "...fraudulent sales representatives are going door-to-door claiming to be with the federal government and peddling phony [insurance] policies. There are also reports of even licensed agents telling people they need to enroll quickly in a policy because of a non-existent 'limited enrollment' period."
As the press release states, Oregon law prohibits the use of deceptive practices in order to sell insurance, as do many states. The insurance fraud departments of many states want to know when citizens are approached by anyone claiming to be licensed or otherwise that is advertising themselves or their policies as necessary because of health insurance reform. A few ways that individuals might protect themselves from falling victim to these scams are:
- Be wary of 'cold calls' (unprompted phone calls or visits from anyone claiming to be from the federal government. Medicare representatives do not make house visits or call unless you request information from them first. Individuals may receive a visit from a U.S. Census worker if they did not return the 10-question survey, but they will have government badges.
- Some fraudulent salespeople are attempting the sale of an, "ObamaCare Insurance Policy." There is no such thing. Health insurance policies are not issued through legislation, but by insurance companies.
- Never give out personal information to strangers no matter how well-spoken they might be. Demand proof of who they represent.
- Finally, always verify that an insurance agent or company is licensed through your state. All state insurance regulatory commissions keep a database of licensed companies and agents. Many of these databases can be searched through online, but you may have to call in and request information if it isn't.
Whether or not you have already become a victim of this type of fraud, the state insurance fraud divisions want you to report it. The insurance fraud divisions of individual states can be found by looking up the state below. Click on the link to be taken to their website. If you already have become a victim, there is probably not much that they can do for you, but it may not be too late, we might be able to help.
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Texas
- Utah
- Virginia
- Washington
- West Virginia