A Florida-based insurance agency is facing potential charges after allegedly submitting fake insurance applications and stealing over $200,000 in insurance premiums. An investigation spearheaded by the Department of Financial Services, Bureau of Insurance Fraud revealed a detailed scam where the agency’s owner/agent used a finance company to pay yearly premiums related to applications that were fake. More than thirty of these applications were submitted.
The majority of commercial and residential insurance policyholders must pay their annual premiums upfront. Insurance agencies join forces with finance companies to take care of the cost of these premiums, allowing policyholders to make monthly payments to the finance company if they are unable to pay the full amount upfront.
For six months, the agent submitted over thirty applications for financing using fake consumer information. The unaware finance company gave the applications the okay and issued annual premium payments to the agent’s company. The company’s suspicions were raised when none of the fake policyholders came forward to make the monthly payments.
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