Bureau of Insurance Warns Consumers about Insurance Scams

 Bureau of Insurance Warns Consumers about Insurance Scams

Bureau of Insurance Superintendent Mila Kofman is warning consumers in Maine about an entity called “American Trade Association.”

American Trade Association, which may be operating under “Serve America Assurance, Ltd” or other names, is not licensed in Maine and is not selling coverage through a licensed insurance company. Superintendent Kofman said unlicensed insurance sales often involve insolvent, dishonest or non-existent insurers. Consumers who have paid premiums to such entities may end up being responsible for paying their own medical bills as well – even though they spent money on premiums thought they were covered.

“When times are tough, criminals try to take advantage of consumers by selling cheap ‘insurance,’” said Kofman. “If it seems too good to be true, it usually is. In most cases like this, there is no insurance, and people who have been paying premiums end up paying their medical expenses, too.”

In general, Kofman says Mainers should avoid purchasing health insurance from companies that advertise by fax, on the internet, or through other unsolicited offers. If an advertisement offers surprisingly low prices, limited-time offers, and little information about the company itself, it is most likely not real insurance.

Before purchasing insurance, consumers should verify that an insurance company is real. “Check with us before you buy. That’s the only way to make sure you are not being scammed by unscrupulous individuals selling phony coverage,” Kofman added. Also check to make sure the insurance agent is licensed in Maine. Consumers with questions or concerns about their insurance can contact the Bureau’s Consumer Health Care Division by calling 1-800-300-5000 or visiting the Bureau’s Web site, www.maine.gov/insurance.

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