Tennesseans Warned About Health Insurance Scams

(NASHVILLE, Tenn.) -- The Tennessee Department of Commerce and Insurance (TDCI) is urging residents to make informed choices and avoid being swindled when buying health insurance.

Officials said scammers hit consumers by collecting premiums for bogus insurance policies with no intention of paying out claims.

"Companies that are not licensed by the state to sell insurance might lead consumers to think they are operating legitimately, all while attempting to evade state insurance regulations," TDCI Commissioner Julie McPeak said in a statement.

The department offered the following tips to consumers to avoid being scammed:

• Ask hard questions and do your homework. Always read all materials and scrutinize websites carefully.

• Treat ads for insurance via spam emails or blast fax with skepticism.

• Deal with reputable agents.

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