Choosing a policy to insure your home, car, possessions, and even your own life is a huge decision, and you want to be sure to set up your policy so that it fits in with your finances and your long-term goals and plans. Because an insurance policy is one of the more expensive lifelong purchases you will make, you want to be sure that you do not fall victim to an insurance fraud scheme or trap that could cost you thousands of dollars and leave you uninsured with few options.
Insurance fraud can be devastating, usually because it is uncovered only when people try to collect on their policies. If a consumer has purchased—and spent several years making payments on—a fraudulent policy, he or she may be left without the necessary funds to make car repairs after being involved in a crash, or replace possessions and buildings lost in a fire, flood, or other disaster. Fraudulent life insurance policies can leave living relatives without funds necessary for planning a funeral, or even for making house, car, and other payments after the loss of the home’s primary earner. Those who do fall victim to these schemes need the help of an attorney at the Evans Law Firm, Inc, an Alameda County insurance fraud law firm.
Common Insurance Fraud Schemes
There are several types of insurance, and each policy presents an opportunity for fraudulent companies to swindle you out of your hard-earned money, and give you a fake policy, or one that is well beyond your means and needs. Consumers have to exercise constant vigilance when choosing insurance policies and providers, in order to protect themselves from falling for a scam or trap. Our Alameda County insurance fraud law firm details two common schemes below:
Force-placed insurance fraud occurs when a homeowner does not make his monthly or annual insurance payments, and the property lender has to take out an insurance policy for the homeowner. If these arrangements are not properly executed, they may be set up to violate lending and consumer protection laws, especially if the homeowner is bullied into an unreasonably expensive or unnecessary policy by the property lender, or if the lender earns kick-backs or commissions on the force-placed insurance policies they maintain.
In a bait-and-switch scheme, a dishonest insurance company will advertise an extremely low rate, or bundled payment option, or some other desirable product to lure in new customers, or to encourage existing customers to purchase additional policies and expand their current ones. These schemes are often not revealed to be false until after the policy has been purchased, usually when consumers try to collect after a loss or tragic event.
Fight Back Against Fraudulent Providers
Insurance fraud comes in many forms. Some people claim that they have been defrauded by insurance companies or insurance agents that have sold them a deferred annuity that either violates the law, wasn’t fully explained, or other fraudulent acts. Many senior citizens are sold deferred annuities by insurance companies or agents that are not suitable or appropriate for them. If you have been sold a deferred annuity in the State of California – either a fixed annuity, equity indexed annuity, or variable annuity that you feel was not appropriate for you or your loved ones, contact the Evans Law Firm for a free and confidential evaluation of your rights. Some insurance companies that sell deferred annuities include: Massachusetts Mutual Life Insurance Company; Principal Life Insurance Company; Jackson National Life; Pacific Life Insurance Company; Aviva Life and Annuity Company (AVIVA USA – AVIVA Life and Annuities company); Genworth Life Insurance Company; Bankers Life and Casualty Co. (by inclusion on this list it does not mean that any company or agent for any of these companies did anything wrong, each situation depends on the circumstances or the policy sold).
At the Evans Law Firm, Inc., an Alameda County insurance fraud law firm, our attorneys represent consumers who have been swindled or cheated by their insurance company or an outside party, tricked into paying for unnecessary coverage, or for policy benefits that they never received. The Evans Law Firm also represents people who have lost their money to fraudulent companies posing as insurance providers, or companies who stole funds, premiums, and other payments without providing the promised coverage. If you have been a victim of insurance fraud, contact the Evans Law Firm for a free, no-strings consultation today at 415-441-8669 or www.evanslaw.com.