Nevada’s Division of Insurance (DOI) state officials uncovered a scam in which flea marketers in Clark County were selling proof-of-auto insurance cards for $100 a piece.
According to Betty Baker, insurance counsel and hearing officer for the Nevada DOI, the phony agents/flea marketers were allegedly selling stolen blank insurance cards or legitimate cards that had been altered and reprinted.
To date, the DOI has confiscated roughly 100 cards before they were sold to consumers. Consumers who purchase these phony cards are in violation of state law requiring auto insurance and if they are involved in an accident, they are legally liable for damages as a result of that accident.
A similar situation recently took place in Lousiana, where consumers were fooled by several agents selling worthless coverage. The agents were not licensed in Lousiana, and therefore the coverage was not binding.
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