The growing number of consumers taking up insurance plans has led to the mushrooming of scam insurance providers. These providers often target new retirees and thus the elderly individuals and small-business owners, who can’t negotiate better rates with legitimate insurers. Be very cautious before you invest in any health policy. Read on to urge an idea about 3 ways during which your insurance firm can scam you.
- Failure to pay claims
Usually, fraud insurance agents sign up a huge number of people quickly by offering them lucrative deals. These insurance providers keep paying small premium amounts and medical claims, but if there is a considerable claim amount or regulators catch them, these illegal companies vanish as if they never existed.
So, just beware if you’re getting delayed payments or your service provider is offering fake excuses for the failure to make the payments. If you’ve signed up for these illegal plans, you will be liable for the medical bills of your employees also.
- Non-licensed health plans
If the company from which you’ve bought your health care policy isn’t licensed by State Insurance Commissioner, you will be in trouble. If all the protections of insurance regulation don’t apply on your service provider, then the company could even be phony. during this case, your service provider is scamming you by selling non-licensed health plans.
Insurance agents aren’t allowed to sell any legitimate ERISA or union plan as federal law governs them. So, if your insurance agent tries to dupe you by selling an “ERISA” or “union” plan, report them to your state insurance department.
- Unusual coverage offered at lower rates
If you’re offered an unusual coverage no matter your health condition which too at a lower rate and much of more benefits as compared to other insurers, its time for you too hit the push. aren’t getting fooled by the lucrative offer, else you will be taken for a ride. The ‘scamsters’ aim to collect huge amounts as early as possible so, they struggle to sell a maximum number of policies at attractive prices.