Learn about P&C Insurance Terms and Definitions
Insurance scam isn’t a new topic. There were cases of people posing as an insurance broker who sold cheap fraudulent insurance policies to customers. Furthermore, the customers thought they were buying an actual coverage from a licensed insurance professional. Also, the victims would not know until they file for a claim. Hence, these “Ghost Brokers” who poses as a confident insurance broker can put the finances at a huge risk. You can learn a lot about such p&c insurance terms and definitions in this blog. Also, becoming an accredited advisor in insurance can be really beneficial for you as an agent.
P&C Insurance Terms and Definitions
In popular culture, “ghosting” refers to interacting with someone and sharing conversations, only to be left abandoned in a short while. As an insurance agent you may wonder how much general liability insurance coverage do i need, well this blog can help you a lot. Similarly, ghost brokers apply for genuine insurance policy in your name, keep your payments for premiums. Seems normal right? Well, ghost brokers cancel your policy shortly after without your knowledge or authorization. Such practices give fraudsters a chance to deceive naïve customers. Getting an AAI designation will help you seal an authentic badge. Later on, the victim would come to know about their canceled policy while filing for claims.
Typically, ghost brokers advertise via cheap insurance on social media sites or messengers. They usually promise you a “too good to be true” cheap policies. You can even list yourself on an agent directory and sell insurance to huge mass
Signs to Spot a Fake Insurance Broker:
Here are some of the tells to watch out for in an insurance broker:
- First of all, advertisement of cheap insurance quotes that are way below than insurance agency’s quotations.
- Secondly, insurance brokers who communicate only in social media or email. They may not even be willing to give their phone number.
- Thirdly, those asking for cash-only payments in person or through cash-transfer apps
- Lastly, insurance agents or brokers making promises to secure an insurance policy on your behalf without providing valid documents from carriers
Tips to Avoid Fake Insurance Broker
Searching for cheap insurance quotes is everyone’s dream. Also, you can get cheap insurance quotes via a trusted independent agent or captive agent. However, you do have to steer clear of those who falsely claims to give you cheaper than actual market rate. Furthermore, you can avoid such fake brokers by contacting your state’s insurance department to verify the license of the company or the agent. Also, you can even contact your friends and family for referrals. Therefore, if you do come across a scam broker then try to get their details as much as possible and lodge a complaint through an insurance technology.