|
|
|
U.S. Department of Labor
Employee Benefits Security Administration
October 2003
|
Printer Friendly
Version
|
|
|
|
Compare insurance coverage and costs. Always
compare the benefits and costs of multiple insurance products. If one
product appears to offer similar benefits at a dramatically lower cost, ask
questions.
|
|
Confirm that the person offering the product is a
licensed insurance agent with a proven record of reliability. Promoters of
insurance scams often engage unlicensed insurance agents to market their
product as a cheaper alternative to traditional insurance. Check out unknown
agents with your state insurance department.
|
|
Verify that any unfamiliar company, organization
or product is approved by your state insurance department.
|
|
Examine the policy to determine the actual
coverage and whether the promised benefits are fully insured by a licensed
insurance company. Do not confuse representations about stop-loss coverage
with a guarantee of group health benefits. Stop-loss coverage often protects
only the issuer, not the insured individuals.
|
|
Request references of employers enrolled with the
provider and get information from employers about benefit payment history
and claim turn around time.
|
|
Ask about the allocation of premiums charged for
commissions, fees and administration expenses. Allocation of a high
percentage of the premiums to commissions, fees and administrative expenses
may indicate a problem with the product or insurer.
|
|
Contact your Regional Office of the Employee
Benefits Security Administration (U.S. Department of Labor) through its
toll-free number at 1.866.444.EBSA (3272) or at www.askebsa.dol.gov to
report problems.
|
