Insurance Scam Uncovered; Hundreds May Not Have Coverage

PR Newswire

OKLAHOMA CITY, Sept. 1, 2017 /PRNewswire/ -- Oklahoma Insurance Commissioner John D. Doak has issued a cease and desist order to a former insurance agent in Cushing. Investigators discovered Mark Lauderdale, whose insurance license expired four years ago, continued collecting payments for insurance policies, but failed to forward all of the money on to insurance companies. The scheme left some of his clients without coverage for years.

"Scams like this are extremely upsetting," said Doak. "We have people making their premium payments like they're supposed to, thinking they're protected from financial disaster. If a fire burns their home to the ground, they'll be out on the street because the insurance policy they are paying for doesn't actually exist."

Lauderdale, whose clients include a small town in Payne County and a senior citizen activity center, hasn't had a valid insurance license since May 31, 2013. Investigators found he created false documents to convince his clients that they were insured. Despite not having a license, Lauderdale advertised his services in the Cushing phone book. He told investigators he had between 300 and 400 active clients.

Consumers Urged to Check Policies

Commissioner Doak is urging all of Lauderdale's clients to call their insurance companies directly to confirm that their policies are legitimate. If they are not, the client should obtain the necessary coverage then contact the Oklahoma Insurance Department's Anti-Fraud Division at 405-522-6614.

Consumer tips:

Verify your agent is licensed at www.oid.ok.gov. The link can be found in the Consumer Assistance section.
Send the payment directly to the insurance company instead of the agent.
Be suspicious if your agent bills you for premium installments after your first payment. Your insurer should handle the billing.
Never sign a blank insurance forms and get a copy of every document you sign.
Contact the company if you haven't received a policy within 60 days of submitting your application.

About the Oklahoma Insurance Department
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.

For more information, contact:
Kelly Dexter405-522-0683
[email protected]

Oklahoma Insurance Commissioner John D. Doak. (PRNewsFoto/Oklahoma Insurance Department)