How Can Agents Stop Fraud?
Agents can protect their companies against potential fraud by being alert to a number of items that should raise a red flag, according to James Quiggle, director of communications for the Coalition Against Insurance Fraud in Washington.
Alarms should sound when an applicant walks into an agency looking for coverage on high-value articles and does not ask about the cost of the premium.
Look for lifestyle indicators. For example, a client looking to insure an expensive house, but driving a very old car or an applicant looking to insure expensive goods who has a job with a low pay scale.
Warning signs should go up for appraisals that are vague, misspelled or lacking photographs. There may also be a problem if the appraiser is not local.
If the clients address is a Post Office box or there is only an answering machine at the number the agent calls, suspicions should be raised. “Crooks are often very evasive and dont want you to know too much,” Mr. Quiggle advised.
If you suspect fraud, slow down the application process, Mr. Quiggle suggested. Check the potential client through the insurance companys claims database. Go slow, he said, and ask a lot of questions.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 10, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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