General Tips When Shopping for Insurance
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| One of the most common insurance crimes occurs
when a producer pockets a premium payment instead of forwarding it to an
insurance company. The victim never receives a policy from an insurance company
or may receive a fraudulent policy. They often learn they have no coverage
after a claim occurs. |
| Try to do business with producers who have a
good reputation in your community. Talk to friends and relatives, and learn
from their experiences. |
| Pay your premium by check or money order made
payable to the insurance company, not the producer. It is not a good idea to
pay in cash, but if paying with cash is your only option, make sure you are
provided a receipt listing the name of the insurance company. |
| Make sure you receive your policy within sixty
days. Your policy must be an original; do not accept a copy. Verify premiums
paid and total premiums listed on declaration page are correct. |
| You are encouraged to report unlicensed
producers and companies to the Alabama Department of Insurance, and to file a
request for assistance if you feel that you have been victimized. All
complaints are investigated. |
| Become aware of unauthorized insurance, which is
the sale of policies by companies that are not licensed, or otherwise entitled
to do business in Alabama. |
| Policies issued by unauthorized insurance
companies have no backing by Alabama guaranty funds, which means that if the
company becomes insolvent, your policy may not provide your benefits. |
It is easy to find out if a company or producer
is licensed. Contact the Alabama Department of Insurance at (334) 241-4141 or
check on this web site. Click on the "Search For" links on the home page named
"Insurance Companies" or "Alabama Licensees" and then proceed to type in the
producers or companies name. Results of your search will be given and you can
click on the name to find out more information about the producer or company.
You need to ask the following questions:
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Is this producer licensed? It helps to have his or her full name and address.
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Is this company licensed to do business in Alabama? Be sure to have the
company's full name, because some names are similar.
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