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.

Avoiding Risks While Protecting Your Assets

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