GUARD û Fraud Spotter 32 Insurance Company Fraud û Pt. 3
(Note: Part 2, issued Tuesday 7/27 should have been labeled #31)
By Laura Quarantiello
® 2004 Tiare Publications Group
806 words
Sometimes the agent from whom you obtain your insurance coverage is
the one perpetrating fraud. You can never be 100 percent safe from
con men working insurance swindles on the inside, but your chances
of avoiding the problem are greater if you work with a large, well-
established company. Your main question: is this a solid, dependable
company that will be there when I need them, or a fly-by-night
operator who will take my money and my trust and run? Check the
company with your local Better Business Bureau office, your state's
attorney general's office or state insurance commission. Check to
see that the insurer is licensed to operate in your state and is
experienced in the type of insurance you're seeking. Of course,
don't discount recommendations from friends who are already covered
by the company. A wise consumer will check the company up, down and
sideways beforehand. You are entrusting a great deal to an insurance
provider, so make sure that you've made the best choice.
The insurance agent you talk to might use a good deal of guile,
coupled with fabricated information to persuade you to purchase your
coverage from him, or even to turn in your current policy and buy
one through his company. One danger is that the agent's promises may
differ drastically from what ends up on paper, or may vanish once
you try to file a claim. Most unethical insurance sales people won't
lie to you outright, but they will misrepresent and cause you to
misunderstand. Get the promises about your policy on paper and keep
a copy locked away against that rainy day when you skid into a
parked car and need to collect.
Some insurance premiums look wonderful at first, but once you try to
make a claim, look out! Pay careful attention to the wording in
policies. A simple case of semantics may deny you the right to a
claim. Certain policies may cover you for only limited types of
injuries, or cover only incidents that happen under certain
conditions. If you're not certain ask your insurer about the
language or see a lawyer well versed in the subject.
Watch out for companies that try to sell extended insurance plans.
These require you to remain with the company for at least several
years. Pulling out early may cause you to incur a hefty monetary
penalty. Again, get your magnifying glass out because the fine print
is important. Shady insurance companies may delay your payment for
up to a year, saying that the claim is undergoing "processing."
Check on the processing time before you sign on the dotted line. If
long
delays happen despite promises of quick payment, check with a
lawyer. You may be able to sue.
Be extremely wary of time limits on filing insurance claims. Many
companies give you only a brief period in which to file the
appropriate forms, otherwise payment is withheld, reduced or denied
altogether. Ask about claim policies and know exactly what you will
need before you have to file.
An easy way to get taken for an insurance ride is to agree to
deductible stipulations. Instead of applying to each benefit period,
some deductibles apply only per accident or illness. Check the fine
print. Always speak up and ask.
Examine all of your policies carefully. You may find overlapping
coverage between one policy and another. Carry only the coverage you
need and don't let a shady or pushy agent talk you into more than
you can use. More than one person has been persuaded to buy flight
insurance, cancer insurance, freeway death insurance or some other
arcane, one-shot incident insurance. Consider life insurance
instead. Most of these policies cover any cause of death and will
save you money in the long run.
Some agents claim that it's cheaper to purchase life insurance when
you are younger. Look at the total cost of two contracts that
provide equal benefits and you may discover as much as a ten percent
savings for the contract that begins in middle age, but agents won't
tell you this, you'll have to find out for yourself.
If you've just bought a new car, look out for the insurance agent
who will try to persuade you to place the maximum amount of coverage
on your policy. The agent knows that your new wheels are important
to you and that makes you vulnerable to his suggestions. Read all
potential policies carefully for overlapping or unneeded coverage.
In the excitement over your new wheels you may be taken for a ride
in the insurance agent's buggy!
(End)
Laura Quarantiello hates criminals and the crimes they commit. Her
book "On Guard" can help you minimize the risk you family faces from
criminal elements. Get more information at:
www.tiare.com/onguard.htm
