Date: June 18, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Insurance Commissioner: Consumers be wary of insurance fraud

Madison, WI—Wisconsin Insurance Commissioner Sean Dilweg is urging Wisconsin consumers to be wary of insurance fraud. Today's economic conditions have consumers looking for ways to cut down on their insurance costs, but could leave them vulnerable to unethical marketing practices. Commissioner Dilweg cautions consumers that taking a shortcut when it comes to insurance could prove catastrophic and costly.

"In weak economic times consumers can avoid becoming victims by staying vigilant and knowing their options," said Dilweg. "What seems too good to be true often is."

Purchasing a policy without thoroughly researching it could leave consumers susceptible to insurance fraud. Selecting the cheapest policy available without first checking into the agent or company could potentially leave consumers without any legitimate coverage.

Dilweg encourages consumers to take some important steps before purchasing any insurance policy:

  • Research the insurance company.
  • Be careful when giving out personal information. A licensed insurance company should give you information about their plan up front without requiring any personal information like credit card numbers.
  • Read all of your insurance documents to familiarize yourself with your coverage and confirm that your policies provide the coverage you need.
  • Contact the Office of the Commissioner of Insurance (OCI) to confirm that the company and the agent offering insurance are legitimate and licensed in the state. Consumers can also visit OCI's Web site at http://oci.wi.gov/ to look up information on companies and agents.
  • You should receive a copy—not a photocopy—of your new policy and other insurance documents within 60 days of purchase. If you do not receive a copy, contact the insurance company immediately.
  • Keep detailed records. Get all rate quotes and key information in writing for your file.

"OCI is always on the lookout for suspected fraud," said Dilweg. "Informed consumers can better protect themselves from unscrupulous scam artists."

If you believe you have been a victim of insurance fraud, or if you are aware of an instance of insurance fraud, it is important to report it by contacting OCI at 1-800-236-8517 and filing a complaint. A complaint form is also available for online filing at http://oci.wi.gov/com_form.htm.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.