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
- 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
- The product claims to be "fully
funded," "fully insured," or "reinsured" but agents
are not told the name of the carrier insuring or underwriting
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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while avoiding risk. Click
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