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 | | From: | Edmund Fitzgerald | | Subject: | It's Time to 'Get Smart' About Insurance Policies | | Date: | Fri, 21 Jan 2005 11:29:13 -0500 |
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 | "Fake Insurance"? What about fake insurance commissioners? Best to boycott
the whole fake industry.
From:
http://biz.yahoo.com/prnews/050121/phf006_1.html
It's Time to 'Get Smart' About Insurance Policies
Friday January 21, 8:26 am ET
Fourth-Annual Get Smart About Insurance Week Shows Consumers Knowledge Is
the Best Policy; Offers 'New' New Year's Resolution In Light of Rise In Fake
Insurance Policies
KANSAS CITY, Mo., Jan. 21 /PRNewswire/ -- Each month, without fail, the
bills arrive - home mortgage, car payment, student loans. Usually the
largest bills cover those items that mean the most to us - the assets we
spent the most time contemplating before purchasing. But what about
insurance? Strangely enough, insurance is often one of the most costly bills
we pay each month - but, usually, the one we think least about.
It is not smart to stay in the dark about insurance - it actually can be
downright dangerous, considering the rise in fake insurance policies being
sold today. The General Accounting Office reported 144 fake health insurers
sold bogus policies that affected more than 200,000 policyholders between
2000 and 2002, resulting in $252 million in unpaid claims. In the same time
period, the number of fake insurers almost doubled.
And, recent studies by the National Association of Insurance Commissioners
(NAIC) show a definite trend: the majority of Americans just do not know
enough about their own policies. No more than 33 percent of those polled
each year since 2001 could say they understood the details of their
insurance policies "very well."
With statistics like these, it is more important than ever to get smart
about insurance. That's why the NAIC and state insurance departments are
encouraging consumers to get smart about their coverage during the
fourth-annual Get Smart About Insurance Week, Jan. 24-28, 2005.
During this special week, consumers are urged to call the Get Smart Hotline
toll-free at 1-866-SMARTWEEK, or visit http://www.naic.org/gsw, to request a
free brochure and get information about what they should expect from
insurance coverage, and tips for confirming whether a policy is legitimate.
NAIC and the state insurance departments serve as objective sources of
information which can help consumers understand the complexities of
insurance coverage.
"When it comes to insurance, knowledge is the best policy," says Diane
Koken, NAIC president and commissioner of the Pennsylvania Department of
Insurance. "It just doesn't make sense to ignore it, especially when it
constitutes such a large portion of most household budgets. Too often people
buy an insurance policy and then forget about it - or they don't make any
changes to it over the years until it's too late."
Get Smart About Insurance Week is all about education.
"Information is the key to avoiding insurance problems and scams," says
Koken. "The NAIC and state insurance departments are here to give consumers
free and objective information in order to make sure their families are
properly and legitimately covered."
Fighting fake insurance
Fake insurance is any insurance plan intended to defraud consumers or
businesses. It can be attractive because it is typically less expensive than
legal policies. But that is because a fake policy does not provide
sufficient - if any - coverage. As a result of fake insurance policies,
honest people and businesses are swindled, health is endangered, premiums
stay high, and goods and services cost more.
Because of the growing number of fake insurers and fraudulent policies,
during Get Smart Week, NAIC officials are urging consumers to "Stop, Call,
and Confirm" before buying any policy to avoid an insurance scam. By simply
stopping, calling the state insurance department, and confirming if a
company is legitimate, consumers can avoid the potential loss of thousands
of dollars which can result from signing a fake insurance policy.
According to most states' laws, with very few exceptions, no insurance
product can be sold by individual agents, brokers, or companies without the
approval of the state insurance department.
Recent studies find room for improvement
To gauge Americans' understanding and perceptions of their insurance
coverage, telephone surveys of 1,000+ adults who are 18 years and older were
conducted over the past three years (2001-2003) by the national research
company OCR International.
Although the number of people who think they have the right amount of
insurance is increasing over time, the number of consumers who say they
understand the details of their coverage "very well" has not increased. In
fact, it has stayed consistent at 33 and 34 percent over the past two years.
"I think what we've seen is that people are content to have insurance, yet
they don't necessarily understand the logistics behind their policies,"
Koken said. "It's that lack of knowledge which sometimes leads to bad
policies, or even worse, fake policies. We want the public to know they have
a free resource to get educated on all insurance matters."
"Get smart" tips for consumers
During NAIC's Get Smart About Insurance Week, consumers are encouraged to
take several steps to become more educated about their insurance coverage.
"We strongly encourage consumers to shop around before they commit to a
policy," Koken said. "We also can't stress enough the need to confirm the
legitimacy of a policy before moving forward. This has become a crucial step
in getting educated about insurance."
Other tips from the NAIC:
-- Fight fake insurance by remembering to "Stop, Call, and Confirm"
before
signing.
-- Call your state insurance department or visit your state insurance
department's Web site for free tips and up-to-date information prior
to
purchasing coverage.
-- Schedule a routine "check-up" with your insurance providers at least
once a year. Inquire about the cost benefit of opting for higher
deductibles.
-- Ask specifically about discounts for good driving records, good
health,
good grades, special education, or training.
-- Shop around for identical products and services. Not every company
charges the same rate.
-- Remember, an insurance policy is a legal document. Read it
carefully.
"We highly recommend all consumers visit their state insurance department
for additional information," Koken adds. "Our state insurance officials are
not only your best source for all insurance-related questions, but they also
have the best understanding of the insurance issues specific to your state."
MEDIA NOTES:
Interviews with NAIC spokespeople and state regulators are available.
Contact Matt Brisch, NAIC, at 816-783-8016, Mitch Germann,
Fleishman-Hillard, at 816-512-2240, or Robin Broder, Fleishman-Hillard, at
816-512-2385.
About the NAIC
Headquartered in Kansas City, Mo., the National Association of Insurance
Commissioners (NAIC) is a voluntary organization of the chief insurance
regulatory officials of the 50 states, the District of Columbia, and four
U.S. territories. The association's overriding objective is to protect
consumers and help maintain the financial stability of the insurance
industry by offering financial, actuarial, legal, computer, research, market
conduct, and economic expertise. Formed in 1871, it is the oldest
association of state officials. For more information, visit NAIC on the Web
at http://www.naic.org. For more information about Get Smart About Insurance
Week, consumers are urged to call the Get Smart Hotline toll-free at
1-866-SMARTWEEK (1-866-762-7893) or visit http://www.naic.org/gsw to request
a free brochure, get information about what they need and should expect from
insurance coverage, and find out how to contact their state's insurance
department.
CONTACTS:
Mitch Germann
Fleishman-Hillard
816-512-2240
germannm@fleishman.com
Matt Brisch
NAIC
816-783-8016
MBrisch@naic.org
Robin Broder
Fleishman-Hillard
816-512-2385
broderr@fleishman.com
This release was issued through eReleases(TM). For more information, visit
http://www.ereleases.com.
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Source: National Association of Insurance Commissioners
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