Insurer Fraud Section
On This Page
Common Types & Schemes
Deceptive Agent Practices
Agent Application Fraud - Agent forges an insurance application using information from an unsuspecting person to obtain commissions.
Cleansheeting - 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
- 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
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
Reporting Insurance Fraud
Toll-free Insurance Fraud Hotline
Online Fraud Reporting
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)
Mail the printed report to:
Texas Department of Insurance
P.O. Box 149336
Mail Code 109-3A
Austin, TX 78714-9336
For more information contact:
Last updated: 03/26/2013