How Can Agents Stop Fraud?
Monday, October 29th, 2001 Fraud Risk ManagementAgents can protect their companies against potential fraud by being alert to a number of items that should raise a red flag, according to James Quiggle, director of communications for the Coalition Against Insurance Fraud in Washington. • Alarms should sound when an applicant walks into an agency looking for coverage on high-value articles and does not ask about the cost of the premium. • Look for lifestyle indicators. For example, a client looking to insure an expensive house, but driving a very old car or an applicant looking to insure expensive goods who has a job with a low pay scale. • Warning signs should go up for appraisals that are vague, misspelled or lacking photographs. There may also be a problem if the appraiser is not local.
