Consumer Alert: Insurance Director Warns Of Scam Involving American Equity Letterhead
COLUMBUS — Ohio Department of Insurance Director Mary Jo Hudson has issued a consumer alert to warn Ohioans about a potential insurance scam. According to reports from other states, people posing as insurance agents are approaching seniors and attempting to sell them fake annuities.
According to reports from other states, these people claim they are affiliated with American Equity Insurance and are using American Equity letterhead as part of their scheme.
While the agents are not affiliated with American Equity, they somehow obtained American Equity letterhead and created correspondence and contracts to make it appear as if they worked for the company. They then would sell fictitious annuities to seniors. In each case, the senior was instructed to make their check out to either the agent or the agency. In return, they were given a bogus annuity contract that the agents had created.
One agent out of Pennsylvania allegedly wrote 17 contracts and scammed $600,000 from the seniors he approached. While there have been no reports of any wrongdoing in Ohio, Director Hudson is issuing this alert in order to make seniors more vigilant to this type of illegal activity.
Director Hudson offers these tips to protect people from insurance scams:
• Before signing a contract, have a trusted advisor or family member review the paperwork.
• Realize that a product that seems too good to be true usually is!
• Keep detailed records.
• Do not give in to high pressured sales tactics. If a solicitor makes you feel uncomfortable, ask them to leave.
• Never issue a check to an agent or agency. The check should always be made payable to the insurer.
• Compare information for similar contracts from several other companies.
• Prior to purchasing a policy from an agent, contact the Ohio Department of Insurance to verify they are licensed and are appointed by the company whose product they are selling.
Ohioans who believe an agent is committing fraud or misconduct should call the Department’s Fraud hotline, 1-800-686-1527. Information about agent fraud and misconduct can be found on the Department’s web site, www.insurance.ohio.gov.
Ohio Department of Insurance Contacts:
Robert Denhard, Public Information Officer
(614) 644-3366
Jarrett Dunbar, Public Information Officer
(614) 644-2475