Lieutenant Governor Gregory R. Francis, who serves as the territory’s Commissioner of Insurance, is reminding the community to take measures to protect themselves against insurance fraud.  According to the National Association of Insurance Commissioners, insurance fraud occurs when an insurance company, agent, adjuster or consumer commits a deliberate deception in order to obtain an illegitimate gain.  It can occur during the process of buying, using, selling or underwriting insurance and through a licensed or unlicensed individual or entity.

Insurance fraud has become a nationwide problem as consumers look for ways to cut down on their insurance costs.  Selecting the cheapest policy available without first checking into the agent or company licensure status could potentially leave consumers without any legitimate coverage.  Fake insurance companies and dishonest insurance agents can also defraud consumers by collecting premiums for bogus policies with no intention or ability to pay claims. 

Francis advises consumers to be mindful of solicitors that they are not familiar with and avoid signing an application for a policy or sharing personal information, such as a Social Security number.  “If you are unsure about the insurance company or agent you are dealing with, stop before signing any paperwork or writing a check and contact the Division of Banking and Insurance to confirm the company or agent offering insurance is licensed to do business in the territory,” Francis states.

The Division actively works to protect consumers by requiring insurance companies and agents to be licensed and investigates complaints of fraud. Consumers can also protect themselves through proper research and vigilance.

Anyone seeking information on the license status of their insurance provider is encouraged to contact the Division prior to doing business with the provider.  Complaints against insurance providers or an individual can also be filed with the Division.  For more information, contact the Division at (340)774-7166 for the St. Thomas/St. John district or 773-6459 on St. Croix. 

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