Insurance Seller Scams Pay attention to the details of your insurance contract. Scammers sometimes slightly alter the name of a legitimate company. Buyer BewareThe saying "If it's too good to be true, it probably is" applies to insurance. In recent years, there have been a number of documented cases of criminals posing as insurance brokers or agents. Some of these criminals offer discount policies from a fake insurance company. If you're not careful when you shop for insurance, you could become the victim of fraud.Always check that the insurance broker, agent or direct writer you are working with is properly licensed.How Fraudsters WorkA common scam involves fraud artists using a slightly altered name of a legitimate insurance company. Online ads may include an email address as well as a phone number. When you contact the advertised insurance representative, a much lower premium may be quoted. While low prices can be tempting, ask questions and do your homework before signing or providing payment.Legitimate insurance companies, brokers, agents and direct writers will NEVER request:A signing feeThat a payment be sent through an electronic or wire transfer, or to an unidentified post-office box.If in doubt, contact the insurance company in question before making any form of payment. If the company doesn't exist, you'll find out before you pay.Learn about the latest scam alerts from IBC's insurance fraud alerts.Insurance is RegulatedAcross Canada, all insurance companies are licensed by federal and/or provincial regulators. Brokers, agents and direct writers are licensed by provincial regulators. These regulators keep lists – some of which are online – of the insurance companies, agents and brokers licensed to do business in specific provinces and territories. For some information requests, you may need to contact the regulator by phone or in person. Take the time, report the crimeInsurance crime can take many different forms. Recognize it. Report it. Related ServicesScam AlertsAcross Canada, provincial and territorial governments regulate and license insurers to ensure that they comply with local laws. These government agencies also regularly publish scam alerts for consumers and businesses.Insurance VendorsInsurance is a significant financial investment so it’s worthwhile to learn about your buying options. You can buy insurance from a broker, agent or direct writer.Licensing of InsurersSimilar to other professions, insurance representatives – including direct writers, brokers and agents – as well as insurance companies, are subject to government regulation.Rights and ResponsibilitiesInsurance companies, brokers and agents are committed to safeguarding your rights when you shop for insurance and submit a claim following a loss. Useful LinksAuto InsuranceRequired by law across Canada, auto insurance covers the owner/driver, passengers, pedestrians and property affected by a vehicle collision.Buying Home InsuranceAs a homeowner, you need to insure your house for replacement costs so that in the event of serious damage or destruction you have adequate coverage. Be sure to keep your home insurance current by reporting material changes or upgrades.Business Insurance CoverageInsurance protects you from losses that may pose a significant threat to your business operations. A major loss to one organization may be a trivial loss to another. When selecting coverage, deductibles and policy limits, there are many factors to consider.