When the economy struggles, the risk of encountering fraudulent insurers, particularly health insurers, increases. Typically, these bogus insurance companies collect premiums or simply gain access to your bank or credit card accounts and steal your money, with no actual insurance coverage provided.

As the old saying goes..."If it sounds too good to be true, it probably is."

Here are some warning signs that a plan is not legitimate:

Unsolicited offers – Scrutinize any offers that come via e-mail or fax that you did not specifically request. Also watch for contacts based on Internet searches.

Low cost for superior benefits – Watch for key statements, such as “Affordable healthcare” and “unlimited provider network.” If the price seems too low for the level of benefits, it is likely a scam.

Easy acceptance – Be cautious if the company seems too eager to get your business by promising almost non-existent qualifications, even for people with pre-existing conditions.

Lack of information – Don’t buy from a company that does not identify itself and provide full contact and location information. Also pay special attention if the only contact is a toll-free number and the person on the phone seems vague or evasive about details.

High-pressure sales tactics – Be wary if the salesperson won’t send you written materials to review before you make a decision or stresses that the offer ends soon and pressures you to buy now.

Persistence in getting your information - It should raise a red flag if someone pressures you to provide personal or financial information, including your Social Security number, bank account number or credit card information.

Suspicious that an offer is really a scam?

Look up the company or call us at 1-800-562-6900 to verify that the company is legitimate before you sign anything or provide any financial information.

Updated 01/24/2012

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