What is 'Unauthorized Insurance'

A phony plan that claims to provide financial protection against unforeseen and potentially catastrophic events. Unauthorized insurance is a scam that some unscrupulous individuals posing as insurance agents use to collect "premiums" from unwitting consumers. The "agents" take the money and run, and the consumers are not only out the "premium" money, but are left without insurance.

Explaining 'Unauthorized Insurance'

Unauthorized insurance scams are especially problematic when the consumer does not find out that they have been cheated until they try to file a claim, because then they will find themselves unexpectedly on the hook for thousands of dollars when they thought they were insured. To protect themselves, consumers can check with their state's insurance department to find out if an insurance product they are being offered is legitimate. They should perform this due diligence before giving any money to the insurance company.

Further Reading

Survey of insurance fraud detection using data mining techniques
arxiv.org [PDF]
… 5 The retroactive date usually precedes the issue date of the policy by an average of 3-5 years, allowing the insured to insure losses that may have occurred but have yet to be recognized/ discovered … Returning to the case of unauthorized trading insurance, the hurdle …

E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010
link.springer.com [PDF]
… 5 The retroactive date usually precedes the issue date of the policy by an average of 3-5 years, allowing the insured to insure losses that may have occurred but have yet to be recognized/ discovered … Returning to the case of unauthorized trading insurance, the hurdle …

Did the 2007 Legal Arizona Workers Act reduce the state's unauthorized immigrant population?
www.mitpressjournals.org [PDF]
… 5 The retroactive date usually precedes the issue date of the policy by an average of 3-5 years, allowing the insured to insure losses that may have occurred but have yet to be recognized/ discovered … Returning to the case of unauthorized trading insurance, the hurdle …

Healthcare access and barriers for unauthorized immigrants in El Paso County, Texas
journals.lww.com [PDF]
… 5 The retroactive date usually precedes the issue date of the policy by an average of 3-5 years, allowing the insured to insure losses that may have occurred but have yet to be recognized/ discovered … Returning to the case of unauthorized trading insurance, the hurdle …

Transnational Twist: Pecuniary Remittances and the Socioeconomic Integration of Authorized and Unauthorized Mexican Immigrants in Los Angeles County
onlinelibrary.wiley.com [PDF]
… 5 The retroactive date usually precedes the issue date of the policy by an average of 3-5 years, allowing the insured to insure losses that may have occurred but have yet to be recognized/ discovered … Returning to the case of unauthorized trading insurance, the hurdle …