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Texas Department of Insurance
Summaries of the News Releases for 2005
TDI Urges Consumers to “Get Smart” about Insurance - “Stop, Call and Confirm” Before You Buy Insurance
News Release Date: 1/25/2005
Category: Fraud
AUSTIN – Insurance fraud is booming. Each year, millions of hard-earned dollars are stolen from consumers by scam artists who offer “insurance” at a price that seems too good to be true.
The best protection against insurance fraud is to be fully informed about the companies and agents you choose to do business with and the products you buy. A lack of basic knowledge makes a person much more susceptible to insurance scams. It is critical to know who you are doing business with. The good news is it only takes a simple phone call to fight insurance fraud. The Texas Department of Insurance (TDI) urges consumers to “Stop, Call and Confirm” before buying any type of insurance.
Before buying any type of insurance, Stop and Call TDI’s Consumer Information Line at 1-800-252-3439. Confirm that the entity you are considering doing business with is a legitimate, licensed insurance company or agent. Consumers can also verify that a company or agent is licensed by visiting TDI’s website at www.tdi.state.tx.us.
Selling insurance without a license is a felony in Texas. TDI’s Fraud Unit investigates hundreds of allegations of insurance fraud every year and helps prosecute offenders. However, consumers can help ensure their own financial safety by becoming more knowledgeable about insurance. Here are some simple steps to take to fight insurance fraud:
• Deal only with licensed agents and companies. Stop, Call and Confirm.
• Never sign blank insurance forms or applications. Get a copy of every form you sign.
• Keep a file of your insurance documents, including policies, correspondence and receipts.
• Never pay premiums in cash. Always pay by check or money order and make the check payable to the insurance company or agency, not the individual agent.
• Keep your insurance and personal identification numbers confidential.
• Be cautious about buying insurance from door-to-door or telephone salespeople or off the Internet.
• Be wary of any offers of huge discounts that require you to act immediately.
• Walk away if an agent becomes evasive or cannot provide answers about coverages, prices or installment plan arrangements.
You can report suspected insurance fraud by calling the Fraud Hotline at 1-888-327-8818. TDI is urging all consumers to take time this week to learn how to fight insurance fraud. In most cases it’s as simple as: Stop, Call and Confirm.
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