Every state has an insurance department that not only regulates the industry but also educates consumers on how to avoid scams and find the best company for their needs.
In other words, the department acts as a watchdog for the industry and the public. On a regular basis, each state’s Department of Insurance will investigate and audit claims made to them by insurers or consumers. Furthermore, with the help of law enforcement, the department can gather evidence to charge fraudsters.
According to the New York Department of Financial Services, avoiding insurance fraud entails using common sense. They provide information on auto, homeowners, long-term care, and health insurance, as well as annuities.
The following pointers will assist you in avoiding becoming a victim:
- Carry out research
- Get to know your agent or broker.
- Always respond to any notices from insurance companies.
- To avoid identity theft, keep insurance documents in a secure location.
- Get a receipt for any payments you make.
- Request a copy of the policy.
- Examine your policy documents thoroughly.
- If you use life insurance as an investment, be aware of what is going on and the benefits that are being provided.
It is estimated that insurance fraud costs the United States more than $80 billion per year. Florida’s Division of Insurance Fraud is widely regarded as one of the most effective agencies in combating insurance fraud. Contact your state authorities if you have any questions about possible insurance fraud or how to file a complaint.