Consumer Alert: Maine Bureau of Insurance Warns Consumers about Insurance Scams

March 28, 2008 -- The Maine Bureau of Insurance is advising consumers to beware of three specific scams circulating via fax machines and through telemarketers.

“In this time of economic hardship, consumers must be especially vigilant for people whose goal is to take advantage of them financially,” stated Maine Insurance Superintendent Mila Kofman. “We have become aware of fax machine solicitations to sell health insurance. These solicitations involve the unauthorized marketing of a licensed insurance company’s products,” stated Kofman.

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The second scam involves telemarketers soliciting personal information including bank account numbers over the phone, claiming that they are enrolling consumers in affordable health insurance. The so-called insurer typically does not exist or is not licensed to sell insurance in the State of Maine. “Anyone receiving calls of this nature should immediately notify the Maine Bureau of Insurance. We will not tolerate this type of illegal activity,” stated Superintendent Kofman.

The Bureau has also become aware that phone solicitation for “low cost” Medicare supplement insurance is also occurring. Again, the caller requests personal information such as a Medicare ID number or a Social Security Number. Never give out this information over the phone. Anyone with questions concerning insurance solicitations should call the Maine Bureau of Insurance at 1-800-300-5000.

In highlighting these scams, the Bureau also offers tips to avoid becoming a victim:

* Verify that the company is legitimate on the Maine Bureau of Insurance web site under the find a licensee search at http://www.maine.gov/pfr/insurance/license_search.htm
* Never give out personal information over the phone. Be suspicious of anyone on the phone who asks for your Social Security Number, bank account number, or credit card information before you have enrolled in the plan.
* Be suspicious of health insurance plans with premiums dramatically lower for a similar product on the market.
* If you have any concerns or questions, call the Bureau of Insurance at 1-800-300-5000.
* Remember if it sounds too good to be true it probably is.

Source: Maine Bureau of Insurance