Insurance Fraud

The concept of the existence of insurance agencies was created because insurance was not available through states' revenue offices. It was only the insurance commissioner or state insurance commissioner's offices that would take insurance claims. 

Because of this lack of support, independent agents were created to represent the insured and negotiate the best price possible. While many states still require insurance agents to be licensed, most are now open to the idea of allowing insurance agents to manage their own businesses. Although some states have specific laws about insurance sales, most allow independent agents to sell insurance to clients.

Independent agents will often purchase policies from several different companies on behalf of the insured. Insurance agents can also purchase policies from the company they represent. Insurance agencies may also sell policies directly to the public. When selling a policy to the public, the insurance agency has to abide by several laws. These laws differ from the state to state, but all mandate that the agent must disclose any material benefits and costs associated with each policy being sold. They must also state the maximum price the policy is worth, which is the amount the insured will pay for the policy, and the duration of the policy. For more details about these companies, visit their website.

Insurance agencies cannot lie about their products or services. This is one law that is directly contrary to the desires of some insurance companies that want to sell policies to individuals who aren't really interested in all the bells and whistles. Also, the insurance company may have to pay for advertising that exaggerates the benefits of a policy. Advertising can be expensive, and insurance agencies have to cover the cost of publishing these ads. If an insurance agency tries to pass off exaggerated claims about a product or service as a necessity to sell a policy, the client may have reason to question the motives of the agent. There are insurance agencies in the market wich are reliable, check this out.

Most state insurance agencies have an attorney that represents them at all times. This attorney is responsible for handling any legal issues that may arise during the course of the company's operations. Many state insurance agencies also have local attorneys that are available to work with clients whenever they need help. In order to remain competitive in this business, many insurance agencies have started to provide online services for clients that can't meet the direct services of an attorney on site. This allows the agent to focus their efforts on generating new business and generating new sales.

Another service, most insurance companies offer is the ability to get multiple quotes from one provider. The number of providers that can be used in a typical quote is limited only by the imagination. The state of California is home to more than a dozen different providers of this single service. However, when an agent provides a quote to a client, they only include the premiums that can be received from the top twenty providers. Due to the exclusivity of the quoting process, agents tend to recommend the most cost-effective plan.

Finally, some states allow an agent to include the premium of another company's plan within the coverage offered by the insurance agency. These plans are known as "merged plans." For instance, the premium for automobile insurance may be equal to that of a collision coverage plan. However, if the agent chooses to recommend an automobile insurance plan that doesn't carry additional coverage that's required by California law - such as underinsured or uninsured motorist provisions - then he or she will have committed insurance fraud, which is a felony punishable by up to one year in prison.

Check out this related post to get more enlightened on the topic: https://en.wikipedia.org/wiki/Vehicle_insurance.