Investopedia

Continue to Site »

Unauthorized Insurer

Filed Under » ,
Dictionary Says

Definition of 'Unauthorized Insurer'

A company that poses as an authorized provider of a financial protection plan. Unauthorized insurers are fraudulent operations that take advantage of consumers and sometimes even insurance agents to collect "premiums" on nonexistent policies. Victims lose their premium money and find themselves exposed to large potential losses that would have been protected by a legitimate insurance policy.
Investopedia Says

Investopedia explains 'Unauthorized Insurer'

Sometimes even legitimate insurance agents can be duped by unauthorized insurers. When this happens, it puts the agent in a very bad situation. Even if the agent has unknowingly acted as a representative of the unauthorized insurer, he or she can be personally responsible for clients' outstanding claims, can be charged with committing a crime, can have his or her insurance license revoked and can be forced to pay a professional fine. Insurance agents can avoid such outcomes by checking with their state's department of insurance to find out if an insurer is licensed to sell the insurance product they are offering. Agents should take this step before selling their clients any policies from a particular insurer.

Articles Of Interest

  1.

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.

  2. 5 Insurance Policies Everyone Should Have

    Insurance policies come in a wide variety of shapes and sizes. Shop carefully and the right policies will go a long way towards helping you protect your assets.

  3. How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.

  4. Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.

  5. The History Of Insurance

    The first written policy appeared in Hammurabi's Code. Find out how it evolved from there.

  6. 15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.

  7. Life Insurance: Putting A Price On Peace Of Mind

    Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.

  8. How Much Life Insurance Should You Carry?

    Learn how much - if any - insurance you really need.

  9. How To Safeguard Your Tax Returns From Identity Theft

    Identity thieves love tax season. In 2012, there were 13 million victims of identity theft. As easy as it is for thieves to steal your information, there are also simple measures you can take ...

  10. How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  2. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  3. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  4. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  5. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  6. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
Trading Center