Insurance industry scam migrates to Colorado

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Department of Regulatory Agency Commissioner Marcy Morrison sent warning today of a scam that targets Colorado insurance companies.

The scam was first reported in California where individuals were allegedly calling licensed insurance agencies and representing themselves as employees of the California Department of Insurance. They requested payment for a penalty fee for not completing a fictitious form that they said 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.

“Although we have received very few reports, this particular scam has surfaced in Colorado,” Morrison said. “These scams often travel from state to state, so it’s a good time to remind people to safeguard their personal information.”

The Colorado Division of Insurance does not assess penalties or request credit card information over the telephone.