7 Ways Fake Health Insurance Companies to Avoid - Ratinah

The increasing number of consumers taking out health insurance plans has led to the proliferation of scam health insurance providers. These providers often target new retirees and elderly individuals and small business owners, who cannot negotiate better rates with legitimate insurance companies.

7 Ways Fake Health Insurance Companies to Avoid - Ratinah

Be careful before you invest in any health policy. Read on for ideas on 3 ways in which your health insurance company can scam you.

1. Failure to pay claims

Usually fraudulent health insurance agents sign up large numbers of people quickly by offering lucrative deals. These insurance providers continue to pay small amounts of premiums and medical claims, but if there are large claims or the regulator catches them, these illegal companies disappear as if they never existed.

So, be careful if you get a delayed payment or your service provider offers false excuses for failing to make a payment. If you have signed up for this illegal plan, you may also be liable for your employees' medical bills.

2. Health package without permission

If the company you purchased your health care policy with is not licensed by the State Insurance Commissioner, you could be in trouble. If all the insurance regulatory protections don't apply to your service provider, then the company is probably a sham. In this case your service provider is deceiving you by selling you an unlicensed health plan.

Insurance agents are not permitted to sell ERISA or lawful union plans as provided for by federal law. So if your insurance agent tries to scam you by selling you an "ERISA" or "union" plan, report it to your state insurance department.

3. Unusual coverage offered at lower prices

If you are offered unusual coverage regardless of your health condition and that too at a lower rate and more benefits as compared to other insurance companies, it's time for you too to hit the panic button. Do not be fooled by tempting offers, otherwise you can be taken for a walk. The 'scams' aim to collect large amounts as early as possible, so they try to sell the maximum number of policies at attractive prices.

4. The insurance agent keeps the premium for himself, and does not pass it on to the insurance company

This can happen the first time the unscrupulous insurance agent captures potential customers. So that you are not exposed to this type of fraud, avoid transferring premium money to an insurance agent's personal account, but transfer it to an insurance company account.

5. When the customer wants to upgrade or downgrade the policy, the agent even issues a new policy

This is the next mode that can occur in insurance agent fraud. Instead of upgrading your policy, unscrupulous insurance agents open a new policy according to the benefits you want. This is so that agents can get a commission for opening a new policy.

At first glance, you may not realize that the benefits listed on your policy are exactly what you want. The easiest way to find out whether your policy is an upgraded old policy or a new policy is from the policy number listed. If it's an old policy, then the policy number doesn't change. On the other hand, if it is a new policy, your policy number will change. If you are observant, this is detrimental to you because the premium you have to pay for a new policy is higher as you age. If your old policy has a cash value, you also need to be careful, because it could be that the cash value of the old policy was withdrawn to pay the premium for the new policy.

You can anticipate this. So, usually when a customer applies for an upgrade, the insurance company will send a notification notification that the underwriter is considering your upgrade request. When you receive a notification, examine the policy number listed, whether the policy number is still the same as the old policy or not. If it is not the same, immediately report this to customer service so they can immediately handle this case. If your new policy has already been issued with a different number, also report this and ask the insurance company to compensate for the loss you bear. Usually, insurance companies will sanction rogue agents like this.

You can also prevent this kind of thing by carefully reading every form or document your agent gives you to sign. Avoid signing documents or forms that are still blank, and don't carelessly sign documents or forms that you haven't read and don't understand.

6. Insurance agents also like to advise their customers to change insurance

The goal is also the same, so that he gets a commission for opening a new policy. Usually, they persuade customers to move by promising excellent service, as he gave when he joined the old insurance company. Customers who are worried that they will find claims problems if they are not assisted by the insurance agent are often persuaded by this seduction. In fact, a credible insurance company will help every customer, even if the agent changes.

Then, changing insurance is very risky making the premiums you have to pay higher as you get older. Each insurance product also offers different and unique benefits. Changing insurance puts you at risk of giving up a benefit that is not offered by the new insurance.

7. The agent does not explain in detail about the insurance products he sells, especially investment insurance or unit link

Again, this can happen because the agent does not explain the insurance product in detail because he wants a fast sales process, so he can get a commission. So that prospective customers are interested and do not change their minds, he provides the most "beautiful" illustration, namely if the prospective customer's investment develops optimally. Assuming that the investment grows maximally, the customer only needs to pay the premium in cash for 10 years, for example, then the next premium payment can be taken from the cash value.

Often insurance agents do not disclose the fact that investments can also be losers. To avoid this, you should carefully study the illustrations/insurance proposals provided by the agent. If there is something you don't understand from the illustration/proposal provided by the agent, ask the agent to get clarity.

that's 7 Ways Fake Health Insurance Companies to Avoid - Ratinah

But don't worry, there are still many professional insurance agents

Although there are various modes of fraud committed by insurance persons, you don't need to worry or give up buying insurance products. Because, there are still many insurance agents who are kind and ready to serve you professionally. With the help of agents, you can find the following services:

  • Consultation about products that suit your needs and financial capabilities,
  • Explain in detail about insurance products, including benefits and illustrations of the premiums you need to pay as well as cash value benefits (if any),
  • Guides you in filling out the insurance application form correctly and asks you to include the required documents,
  • Ready to help you in handling claims,

Those are some of the fraud modes carried out by insurance agents as well as services that you can get from insurance agents. By knowing these two things, hopefully you will be more alert and avoid insurance agent fraud.


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