Insurer Fraud Section
On This Page
Common Types & Schemes
Deceptive Agent Practices
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Agent Application Fraud - Agent forges an insurance application using information from an unsuspecting person to obtain commissions.
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Cleansheeting - Agent conspires to acquire life insurance without disclosing life-threatening illness.
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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.
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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
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Submission of falsified financial statements
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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.
Avoid Becoming a Victim
When Buying Insurance
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Confirm that the company or agent is licensed
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Beware of unsolicited offers or offers to upgrade
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Beware of unreasonably low premiums
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Beware of investments that seem too good to be true
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Make sure you receive your policy within 60 days
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Protect your insurance policy numbers
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Never pay premiums in cash
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
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
For more information contact:
Last updated: 03/26/2013
