Unauthorized Insurance
What Does Unauthorized Insurance Mean?
Unauthorized insurance refers to insurance that is not legitimate. It provides no real benefit because the policies are either scams or the insurer is not licensed to operate in the relevant state or region. Unauthorized insurance is the illegal or fraudulent counterpart to authorized insurance, which is recognized and permitted by law.
Insuranceopedia Explains Unauthorized Insurance
Unauthorized insurance can pose significant problems for misinformed individuals who purchase it. These individuals may lose hundreds or even thousands of dollars in premiums, and if they file a claim, it will not be covered. This could leave them personally responsible for damages amounting to tens or even hundreds of thousands of dollars. For example, an unauthorized insurance scenario would involve a company legally permitted to insure only Wyoming residents offering policies to residents of Idaho.
