Tennessee Officials Warn Consumers about Health Insurance Fraud

May 29, 2012

Officials in Tennessee say asking hard questions, reading all materials, and scrutinizing websites are important steps to be certain a health insurance offer is legitimate. The Department of Commerce and Insurance says unlicensed companies have been defrauding consumers by collecting premiums for bogus insurance policies, with no intention of paying claims.

Officials in the Volunteer State say coverage that boasts low rates may not be what it appears to be. Consumer protection specialists say its a good idea to be skeptical of insurance ads that arrive through spam e-mails or blast faxes. They stress that insurance customers should deal with  reputable agents who are selling  state-licensed insurance products.