Insurance Fraud in Kansas: What to Know and What to Do

The insurance industry in Kansas has its share of challenges and problems and one of the major factors they have to contend with is the occurrence of insurance fraud. In an attempt to quantify this occurrence, it is estimated that a typical family in Kansas pays an additional $850 to cover for the cost incurred as result of insurance fraud in the state.

One of the foremost steps taken by the state of Kansas to prevent insurance fraud is to pass legislature outlawing such activity in 1994. However, it cannot be denied that such activities is still prevalent and impact the industry and policyholders considerably.

Consumers of insurance products also need to be alert in order to prevent from being victimized. Right at the start of sales presentation, be wary of any suspicious actions or words made by the insurance agent. This includes any attempt to pressure you with an immediate sale or insisting on payments be made in cash, cashier checks, or money orders where there is no way for you to trace them. Another sure sign of fraud would be non-receipt of the policy itself. You should also exercise caution when the agent advices you not to disclose any information related to the policy, as this could be a basis for you to lose your policy. You should also report any medical bills for procedures you did not underwent and visits you did not make. Should your policy be discontinued, make sure you have the proper document from the insurance company detailing the reasons for cancellation or non-renewal.

Insurance fraud can also be done through identity theft. Unscrupulous individuals may use your personal information to obtain an insurance policy and make false claims. However, the greatest damage caused by identity theft is not monetary in nature but rather on the credit history of the victim. Correcting information and getting your name cleared can be quite challenging and frustrating. In order to prevent identity theft, you should not freely divulge any information like social security number to anyone who asks. Before throwing away documents related to your financial information, shred them first to prevent other people from using them. You should also make online transactions with certified and secured websites. To this end, check your credit report regularly and report any suspicious charges to authorized agencies.

Though there is no insurance policy offered to cover the actual damages caused by identity theft, there are some products that address the cost of clearing up your name and correcting your credit history. For an affordable rate of $20 to $60 per year, these policies have typical limits of $10,000 to $15,000, which you can use while you take time off from work to submit documents and making telephone calls. You can also use the money to hire a lawyer in pursuing cases against the perpetrators. As in any other insurance policies, be sure to understand the terms and conditions of each coverage contained in this particular product, so as to ensure you follow the correct procedures and processes in making your claims. Some homeowner’s insurance policy may also include identity theft insurance so make sure you checked first before making purchase. Some providers may also impose deductibles that you would need to pay before claiming your coverage.

For further assistance and guidance, residents can pay a visit to the Anti-Fraud Division of the Kansas Insurance Department. This particular agency handles insurance fraud investigations on all products except Medicaid, Medicare, and fraud on worker’s compensation claims. The division is also active in recovering monetary losses reported and incurred in its cases.

We help our Kansas customers in Wichita, Overland Park, Kansas City, Topeka, Olathe, Lawrence, Shawnee, KS and other cities in The Sunflower State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Kansas insurance agent and broker network, you can compare rates quickly from the comfort of your home.

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