California Commissioner Warns Insurance Agents of New Scam

California Insurance Commissioner Poizner warned California licensed insurance agents and brokers to beware of a scam. According to the Department of Insurance, individuals have been reportedly calling licensed insurance agencies and representing themselves as employees of the California Department of Insurance. These individuals, pretending to be CDI employees, have requested payment for a penalty fee due to not completing a fictitious form that they purport the department sent to the agencies. The same individuals also requested that the insurance agencies provide credit card information over the telephone to make the penalty payment and to avoid cancellation of their license. Commissioner Poizner warns all agents and brokers that these individuals are not employees of the California Department of Insurance and are attempting to scam insurance agencies for financial gain. It is not the policy, practice or procedure for the California Department of Insurance to request credit card information over the telephone. If agents and brokers receive a telephone call requesting this information, they are advised not to provide the caller with any personal information including credit card or social security numbers. They also should contact the local law enforcement agency. Enforcement officials are actively investigating this scam. Source: CDI, Insurance Journal