Avoid insurance fraud
Insurance fraud takes many forms
Fake insurance companies defraud consumers by collecting premiums for bogus policies with no intention of paying claims. These “companies” might offer policies at costs that are significantly lower than competitors’ prices or they might be difficult to reach by phone — if there's a listed phone number at all.
Agents and brokers have also deceived consumers for personal gain. If you do not receive an insurance ID card or a copy of your policy in a timely manner, this could be an indication that your agent or broker is scamming you.
Consumers can also be guilty of insurance fraud. The National Insurance Crime Bureau estimates that 10% of all insurance claims filed are fraudulent, adding $200 to $300 a year in higher insurance premiums for the average household. Fraud costs Americans billions of dollars each year.
You can help fight fraud by educating yourself about it, so that you recognize it and don't fall victim yourself, and by reporting it so that we can help stop it.
Educate yourself about fraud
Insurance fraud: Understanding the basics. (68 KB)
See our Fraud facts page.
Read case summaries of scams we have uncovered.
Read brochures about specific types of fraud. (www.nicb.org)
Watch videos about recent scams. (www.nicb.org)
Things to consider
Questions to ask yourself if you're concerned about your agent.
Warning signs that a health insurance offer is a scam.
Fraud-prevention tools
Look up a licensee or insurer to make sure he or she is licensed in Washington.
Make sure your insurer is approved to do business in Washington.
Buying a car? Find out if it has been flood-damaged, stolen or has some other issue. (www.nicb.org)
Investing or buying an annuity? Make sure your advisor is licensed (www.dfi.wa.gov)
and check his or her background (www.finra.org).
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