Nevada insurance commissioner warns consumers of fraud
Nevada Insurance Commissioner Alice Molasky-Arman says consumers must stay alert to avoid fraudulent insurance companies.
“If the insurance you buy is not legitimate, you may face hundreds or thousands of dollars in unpaid medical bills, repair costs for home or automobile or to make up for life insurance that does not exist,” she said. “If a company you buy from is unauthorized and unlicensed, no financial recourse exists if that company becomes insolvent and individual consumers likely would be responsible for any expenses incurred.”
She said consumers should make sure the insurance company and the agent are licensed in Nevada. They can do so by calling the Insurance Division at 687-4270 to make sure the agent’s licenses are posted.
She said potential signs of trouble are when a policy costs far less than what other companies charge.
“If it’s too good to be true, it probably isn’t legitimate,” she said.
She also advised consumers to steer clear of agents or companies which become evasive when asked about licenses, or those companies which insist on cash payments.
She said other signs are companies which boast they insure everyone regardless of history or risks and those which ask for detailed personal information not needed to write insurance.
She said consumers should check both the agent and the company because some unlicensed companies will recruit licensed agents to sell their products.