Insurance broker arrested
The FBI said premium diversion or embezzlement of insurance premiums is the most common type of insurance fraud. Another common premium diversion is selling insurance without a license, collecting premiums and then not paying claims.
Another scheme is when phony insurance companies collect premiums for bogus policies with no intention of paying claims, according to the National Association of Insurance Commissioners. These entities might offer policies that are significantly lower than competitors’ prices and might be difficult to reach by phone.
The Coalition Against Insurance Fraud said insurance buyers should tread slowly if the agent or company representative seems evasive or can’t answer your questions. The coalition offers other tips here.
In addition to state agencies, report suspicions of insurance fraud to: https://eapps.naic.org/ofrs/.
Consumers may also call the NICB Hotline at (800) 835-6422 or text information to TIP411, keyword “FRAUD” to remain anonymous.