It was only within a day or two of the Haiti earthquake that reports warned about charity scams that claimed to be collecting money for Haitian relief. Scams have always dogged the insurance industry, too.
A.M. Best recently reported on a ”faux” travel insurance company in Florida that operated without an insurance license. Florida officials intended to shut down Prime Travel Protection Services. Still, the company wasn’t caught before selling policies and racking up more than 300 complaints from customers who purchased travel insurance to cover cruises that were eventually cancelled.
Of course, it’s illegal to sell insurance policies without being licensed. Yet every year unlicensed insurers are caught and disbanded. If you plan to buy a policy from an insurance company you’ve never heard of, take a minute to verify that it’s licensed in your state. Your state insurance department will have a list of licensed insurers.
January 28th, 2010 on 10:31 am
Adam, I’m sure Richard was thinking the same thing. It’s sick to know that there are people who would take something we should all be fortunate to have, something that’s here only to help us. Richard – that is unfortunate, but good thing you came out in the long run. Kharma, maybe?
Brad – it’s kind of like buying name brand vs. generic. Or like buying Pabst vs. Blue Moon
January 26th, 2010 on 11:52 am
I come from a small town in Texas where something like this happened to myself and three other families for auto insurance. We actually just finished a settlement against the “company.” It was an ugly, long battle but we came out victorious to say the least.
January 21st, 2010 on 9:52 pm
I’m always so worried about things like this happening to me. I only buy from the best, even if it means spending a few extra dollars. At least I know I won’t find myself in a sketchy situation.
January 21st, 2010 on 9:49 pm
What kind of person would make a scam out of a tragedy?