Nevada, Colorado Insurance Agents, Brokers: Beware of Scam

June 4, 2009

Licensed insurance agents and brokers in California, Colorado and Nevada are being warned to beware of a scam targeting them.

The Nevada Division of Insurance, California Department of Insurance and Colorado Division of Insurance have received reports that individuals have been calling licensed insurance agencies and representing themselves as employees of the state’s Division of Insurance. These individuals, pretending to be Division of Insurance employees, have requested payment for a penalty fee. The same individuals also requested that the insurance agencies provide credit card and social security information over the telephone to make the penalty payment and to avoid cancellation of their license.

The Insurance Commissioners of all states are warning agents and brokers that these individuals are not employees of the Division of Insurance and are attempting to scam insurance agencies for financial gain. It is not the policy, practice or procedure for the DOIs to request credit card or social security information over the telephone, with regards to a payment.

“Although we have received very few reports, this particular scam has surfaced in Colorado. These scams often travel from state to state, so it’s a good time to remind people to safeguard their personal information,” said Colorado Commissioner Marcy Morrison. “We want to be proactive and give people the information they need to avoid being taken by this type of con artist.”

If agents and brokers receive a telephone call requesting this information, they are advised not to provide the caller with any personal information including credit card or social security numbers, as the Division of Insurance will always be able to provide written confirmation regarding any payment request. They also should contact the local law enforcement agency. Those in Nevada can also contact that state’s Division of Insurance at 775-687-4270 in Carson City, 702-486-4009 in Las Vegas, or toll free at 800-992-0900.

Enforcement officials are actively investigating this scam, which first occurred in California.

Source: DOIs

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