AN ILLEGAL, EXPENSIVE

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AN ILLEGAL, EXPENSIVE DANGEROUS TREND FAKE
INSURANCE

• How to protect yourself and help others

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Lets start with a story

• Pete Orr was a NASCAR circuit driver in Florida
  who owned health insurance provided by TRG
  Marketing Group based in Indiana
• Orr died of cancer in 2002, and TRG refused to
  pay his cancer treatment claims
• Orrs family was left with full responsibility
  for huge bills they THOUGHT would be paid by
  insurance
• It turns out, TRG was an UNLICENSED entity,
  selling fake insurance and had no intent to pay

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Understanding fake insurance

• Whats the problem?
• Whos at risk?
• What can you do to protect yourself?

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WHATS THE PROBLEM?

• Fake insurance polices are scams designed to
  steal your money, and theyre on the rise in
  every line of insurance, costing consumers
  billions of dollars in unpaid claims

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Fake insurance is illegal

• Fake insurance is ANY insurance plan intended to
  defraud you or your business
• With few exceptions, no insurance product can be
  sold by individual agents, brokers, or companies
  without the approval of your state insurance
  department
• Fake insurance plans are sold WITHOUT the
  approval of your state insurance department

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Fake insurance is worthless

• If you buy fake insurance, youll pay premiums,
  but your claims wont be paid
• Just like counterfeit money, fake insurance may
  appear to be legitimate, but it is actually
  illegal and worthless

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Fake insurance is on the rise

• In the area of fake health insurance alone, 144
  fake health insurers sold bogus policies to more
  than 200,000 policy holders between 2000 and
  2002
• resulting in 252 million in unpaid claims!
• In the same period of time, the number of fake
  insurers almost doubled. Many operated in more
  than one state and under more than one name.
• SOURCE The General Accounting Office

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WHOS AT RISK?

• Fake insurance can touch anyone at any time with
  potentially disastrous results

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Everybody, but especially

• Older adults
• Small businesses or associations looking to
  reduce healthcare costs
• Even reputable agents can be unknowingly duped
  into selling fake insurance by dishonest
  insurance brokers

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Its cheaper, so its tempting

• But thats because a fake policy does not provide
  sufficient if any coverage

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Fake insurance hurts people

• As a result of fake insurance policies
• Honest people and businesses are swindled
• Health is endangered
• Premiums are driven higher
• Goods and services cost more

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WHAT CAN YOU DO TO PROTECT YOURSELF?

• Fighting fake insurance is simple.Look for the
  warning signs, then,STOP CALL and CONFIRM
  before you buy

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Three warning signs

• If youre not absolutely sure youre dealing with
  a reputable, licensed insurance provider, look
  for these warning signs of fake insurance
• Aggressive marketing and a high-pressure, you
  must sign today, sales approach with lots of
  fine print and disclaimers
• Premiums that are 15 percent or more under the
  average price for comparable insurance products
  on the market
• Few coverage limitations
• THEN

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STOP

• Before signing anything or writing a check

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CALL

• Your state insurance department
• Knowledge is your best policy, and your state
  insurance department is your best resource for
  insurance-related questions

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CONFIRM

• If the company is legitimate and licensed to do
  business in the state of

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When you do

• Youll not only be protecting yourself from
  being swindled, but youll also be helping
  regulators hunt down and take action against the
  con artists who sell fake insurance

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THANK YOU

• Questions?