Iowa Insurance Division warns of multistate identity theft scheme

The Iowa Insurance Division is warning Iowans about a multistate identity theft and insurance fraud scheme that regulators say targets job seekers and prospective insurance agents.

According to the division, scammers are contacting people and encouraging them to obtain an Iowa resident insurance producer license, promising to handle sales leads and policy administration on their behalf. Once a person is licensed, the scammers obtain the producer's National Producer Number and other licensing credentials.

The credentials then are used to issue unauthorized health and life insurance policies in consumers' names, allowing scammers to collect commissions and, in some cases, federal subsidies available for coverage purchased through the Affordable Care Act marketplace, the division said. Regulators said scammers may alter or fabricate consumer information to maximize payments through federal advance premium tax credits.

The division said the scammers generally operate from offshore locations.

Regulators warned prospective insurance producers not to provide licensing credentials to third parties offering to write or manage policies under their names. Doing so could expose the license holder to legal liability, loss of their license or potential fraud charges.

Consumers should watch for insurance documents, bills or tax notices involving policies they did not request or authorize, which could indicate their identity has been compromised.

Iowans who believe they have been targeted or discover an unauthorized policy in their name can report it to the Iowa Insurance Division at (515) 654-6556 or online at ofrs.naic.org.