Agents Can Help Consumers Avoid Health Insurance Scams

As insurance agents look for ways to help consumers, one golden opportunity is assisting clients in avoiding scams.

Given the recent attention to health care reform, there unfortunately is the opportunity for scammers to con consumers out of money when it comes to their health insurance.

While the majority of agents are trustworthy and there to serve their customers, reports nationwide note that fake agents and sales reps are trying to take advantage of consumers by posing as representatives of the federal government. The goal behind this scam is to pass along fake health insurance policies, especially to elderly individuals.

Agents should warn consumers that they should be looking for unconventional methods with which to sell insurance.

There are several tips that agents can pass along to consumers to help them avoid becoming the victim of an insurance scam.

Among them are:

• Consumers need to be wary in the event a person appears at their home claiming to be with the federal government and attempts to sell them something. The majority of employees from federal agencies will not show up at your door, so be wary if someone claiming to be from there does.
• In some states, some fraudulent sales folks try to sell a bogus product known as "ObamaCare Insurance Policy." Keep in mind that health insurance policies are issued by companies and are not issued through legislation.
• Legitimate agents will not pressure you into buying and/or signing something.
• Most importantly, DO NOT let your clients give out personal information, including items like Social Security number, bank account number, Medicare number, etc. to people they do not know.
• Finally, make sure an agent and insurance company are licensed by your state's insurance department. One way to check this is to locate presently licensed insurers and agents on the state's insurance department Web site.

While agents oftentimes have a full plate of responsibilities on their daily schedules, looking out for customers goes a long way in making sure you retain them as clients and perhaps add new ones through referrals.