Combating Insurance Fraud

Insurance fraud costs the nation millions of dollars a year and, according to the industry, results in higher premiums. These tips can help consumers avoid being taken by fraud perpetrators.

* When buying insurance, contact your state insurance department to make sure the insurance company is licensed and covered by the state’s guaranty fund, which pays claims in case of default.

* Be wary about buying insurance from door-to-door or telephone salespeople. Be suspicious if the price of insurance is substantially below rates from other companies.

* Find out how the insurer’s credit-worthiness is rated by agencies such as Standard & Poor’s, A.M. Best Co. or Moody’s Investors Service. Most public libraries have copies of these reports.

* Make sure you receive a written policy within 60 days of paying your first premium. This ensures that the agent forwarded the premium to the company.

* Never sign blank insurance claim forms.

* Ask for detailed bills for all services. Carefully check them for accuracy. Be sure you received the service or medical treatment listed. Watch for double-billing or unexplained excess charges.

* Be sure that “free” services really are.

* Be wary if, after an accident, a stranger contacts you to offer “quick cash” or to recommend a particular medical clinic, doctor or attorney. He or she could be part of a fraud ring.

* Protect your insurance identification numbers as you would a credit card number.

* Carry a disposable camera in your car’s glove compartment. If you’re in an accident, take pictures of the damage and all the people in the other car. Get the passengers’ names and telephone numbers along with the driver’s.

* If you suspect fraud, call the National Insurance Crime Bureau’s hotline at (800) TEL-NICB (835-6422).

Source: National Insurance Crime Bureau

Victims’ Rights

Often, victims of serious crime feel helpless and believe there is no way they can get help overcoming their trauma. But the state of California will reimburse, within limits, victims of crime and their dependents for:

* Medical expenses, including psychological therapy.

* Loss of wages.

* Costs of job retraining and rehabilitation.

* Burial expenses.

* Victims will not be compensated for property loss, with the exception of eyeglasses, hearing aids or other prosthetics stolen or damaged during the incident.

* Anyone desiring additional information on eligibility for state victim compensation or help in filing a claim may call (714) 834-4350.

Source: County of Orange