According to state insurance commissioners around the country, immigrants are increasingly the victims of insurance fraud. Newcomers often have limited English skills and have little or no understanding of insurance-a complex subject that many English speakers do not fully understand. Scam artists prefer to prey on unsophisticated consumers. Con artists take advantage of the fact that newcomers often feel more comfortable around people of the same background, and trust people who speak the same language. But no matter who referred you to an insurance agent or company, it is important to check them out with regulatory agencies before you purchase a policy.
Insurance contracts are complicated legal documents and they are usua lly written in English.
While many newcomers may speak some English, they may be unable to understand the specialized terms contained in insurance contracts. Many Asian Americans prefer to pay their bills with cash, because they are not used to banks, or may even have come from countries where banks are not particularly trustworthy. These immigrants may feel safer keeping their money at home and paying their bills with cash instead of checks or credit cards. Unfortunately, cash payments are not as easy to trace as these other forms of payment and may encourage premium fraud-which happens when agents or brokers keep the money paid by policyholders, instead of sending it to the insurance company. In immigrant communities, there may be con artists who prey deliberately on people who speak the same language.