Your Worst Nightmare: Insurance Agent Fraud!
Your worst nightmare is after paying for years into an insurance policy and on making a claim, to be told that the policy has lapsed and been encashed, all without your knowledge.
Like all industries, the majority of insurance agents conduct their business in a correct and professional manner but unfortunately some rogue operators can carry out substantial frauds.
Some examples of insurance agent fraud:
1) The customers premium is stolen before it is credited with the insurance company.
2) Insurance agent sells a policy to the customer and collects the premium. The agent however never processes the policy with the insurance company and retains all future customer premium payments.
3) The insurance agent forges the policy-holders'signatures and steals the premiums and/or cash value of the policies.
4) The customer is persuaded to terminate their existing policies and buy new ones so the insurance agent can earn extra commissions.
It is recommended that all correspondence received from your insurance agent and insurance company is kept and provided to your trusted advisor to review on an annual basis. Where areas of concern arise, the documentation should be reviewed by an independent insurance agent.