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You are here: www.tdi.texas.gov . fraud . frifsection

Insurer Fraud Section

On This Page

Common Types & Schemes

Avoid Becoming a Victim

Reporting Insurance Fraud

Common Types & Schemes

Deceptive Agent Practices

  • Agent Application Fraud - Agent forges an insurance application using information from an unsuspecting person to obtain commissions.
  • Clean sheeting - Agent conspires to acquire life insurance without disclosing life-threatening illness.
  • Conversion - Agent retains customer premiums, provides the customer with fictitious insurance documents and issues fraudulent liability insurance cards. May involve the conversion of annuity funds.
  • Churning - Agent induces customer to use cash value of existing policy to purchase a new policy, resulting in another commission for the agent.

Fraud by Company Officials

  • Submission of falsified financial statements
  • Misuse of company funds

Unauthorized Insurance

  • Insurance plans not authorized by the Texas Department of Insurance.
  • Individuals not licensed to do the business of insurance in Texas.
  • Fraudulent group/individual health plans.

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Avoid Becoming a Victim

When Buying Insurance

  • Confirm that the company or agent is licensed
  • Beware of unsolicited offers or offers to upgrade
  • Beware of unreasonably low premiums
  • Beware of investments that seem too good to be true
  • Make sure you receive your policy within 60 days
  • Protect your insurance policy numbers
  • Never pay premiums in cash

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Reporting Insurance Fraud


Toll-free Insurance Fraud Hotline

800-252-3439

Online Fraud Reporting

Online Reporting for Consumers

Fraud Reporting for Insurance Companies

Download a Fraud Reporting Form

Download Form

Email the completed report as an attachment to: FraudReport@tdi.texas.gov
(Please remember - Information sent via e-mail is not encrypted)

or

Mail the printed report to:
Texas Department of Insurance
Fraud Unit
P.O. Box 149336
Mail Code 109-3A
Austin, TX 78714-9336

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For more information contact:

Last updated: 09/06/2014

Contact Information and Other Helpful Links

Translation by WorldLingo


Translation by WorldLingo


Translation by WorldLingo