Indiana health insurers are not unlike other health insurers
across the nation: They have dramatically raised their premiums in the
last year. The result? A plague of unlicensed health insurers has
cropped up, preying on consumers' pocketbooks and saddling them with
unpaid claims.
Insure.com Car Insurance - Official site. Compare auto insurance quotes, 200 companies, instant term life insurance quotes, life insurance quotes, health insurance quotes, medical insurance quotes, dental insurance, long-term care insurance, renter's insurance.
|
See the biggest insurance problems across the country
|
"We've
seen a flurry of [unlicensed insurers] selling products in the past six
months," says Greg Thomas, chief deputy commissioner for the Indiana
Department of Insurance. According to Thomas, it's not just small
businesses that are falling victim to the scams of unlicensed insurers.
"It's not just the Mom and Pop
companies," says Thomas. "It's sophisticated companies with attorneys
on staff. People really must perform due diligence. They aren't
checking out these companies before they buy policies."
According to Thomas, the weakened
economy has caused many more people to drop their individual health
insurance policies because they can't afford them. If an insurance
company appears to offer them coverage at lower rates than what they'd
get by joining the state's "high risk" pool (see High-risk health insurance pools), they often snap up the policies before they know what they're buying.
"It can make you feel panicked if you
think you don't have coverage, and it can be a relief to think you may
be able to get a less expensive policy," says Thomas. "But you
shouldn't buy it before investigating."
Thomas says you must call your state department of insurance to confirm whether your health insurer is licensed before you
purchase a policy. To find the contact information for your department
of insurance, select the state in which you live from the pull-down
menu marked "Insurance in your state" at the top of this page. For more
information about fraudulent insurance companies, see How to spot an unlicensed insurer.
|