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NAIC Launches Campaign to Fight Unauthorized Insurance

During the course of the next several months, the National Association of Insurance Commissioners (NAIC) will roll out a campaign to combat fraudulent insurance sales....
March 22, 2004

During the course of the next several months, the National Association of Insurance Commissioners (NAIC) will roll out a campaign to combat fraudulent insurance sales. The campaign will target unauthorized insurance plans, which often are not approved by state insurance regulators and do not offer the benefit requirements of legitimately licensed policies. The NAIC says fraudulent insurance plans are becoming more prevalent in every line of insurance, and have cost consumers billions in unpaid claims. The General Accounting Office (GAO) estimated in a recent report that there had been upwards of 144 unauthorized entities which covered at least 15,000 employers and more than 200,000 policyholders in the US. Between 2000 and 2002 alone, it is estimated that these entities failed to pay at least $252 million in medical claims.

NAIC Launches Campaign to Fight Unauthorized Insurance (NAIC 3/16/04)