Carson City, NV September 19, 2019
The Nevada Division of Insurance
(“Division”) was alerted by the California Department of Insurance of a
national insurance scam targeting consumers shopping for privately funded
loans, usually for real estate transactions.
The perpetrators allegedly contact
consumers who have inquired online about securing a loan, using the name Val
Taylor/Val Taylor Investments (this person is also a victim). The
perpetrators then tell the consumer they can arrange the loan, but the borrower
must first purchase a “Loan Payment Protection Insurance” policy that will pay
the loan to avoid default, in the event the borrower is unable to make
payments.
To appear legitimate, the scammers provide
a certificate of insurance that appears to be issued by the California
Department of Insurance, includes the Great Seal of the State of CA and bears
the name of the borrower. The certificate is fraudulent. The Nevada
Division of Insurance like the California Department of Insurance are state
regulatory agencies and do NOT issue insurance certificates, but rather
regulate the insurance industry. As always before you buy, verify a person’s license number by using the
Division’s tool at https://di.nv.gov/ins/f?p=licensing:search; anyone who sells
insurance must be licensed by the Division.
There have not been any reported cases of
this type of fraud in Nevada yet, but there have been reported victims in at
least three states including California. If you have been contacted by anyone
offering to loan you money and requiring you to purchase a loan guarantee
policy, do not send them money or provide any personal information. If
you suspect you are the victim of these scammers, please contact the Nevada Division of
Insurance Consumer Service Section toll free at
(888) 872-3234.
About the Nevada Division of Insurance
The State of Nevada Division of Insurance,
a Division of the Nevada Department of Business and Industry, protects the
rights of Nevada consumers and regulates Nevada’s $14 billion insurance
industry. The Division of Insurance has offices in Carson City and Las Vegas.
In 2018, the Division investigated more than 3,100 consumer complaints and
recovered over $8.4 million on behalf of consumers. For more information about
the Division of Insurance, visit DOI.NV.GOV.
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