Sometimes the best new-business decision an agency makes is knowing when to stop and ask a few more questions. As the great Ted Lasso says,“ Be Curious, Not Judgmental.” What I like to say is I have questions and then my questions have questions! •
AGENCY OPERATIONS
number or date of birth isn ' t necessarily proof that everything else in the application is legitimate.
LOOK AT THE WHOLE PICTURE
None of the things our KAIA member encountered, standing alone, proves fraud. Someone can make a mistake about the age of a roof. A parent might pay a child ' s insurance premium. A customer could have a perfectly legitimate reason for wanting coverage bound quickly. And people get info wrong all the time( I know I certainly do!).
But when several unusual circumstances start appearing together, it may be time to slow things down and pause. Some red flags worth watching include:
• Info that changes or doesn ' t match from one conversation to the next;
• Property info that conflicts with other records;
• One person or bank account paying premiums for separately owned or seemingly unrelated risks;
• A customer who seems unusually focused on getting payment processed immediately;
• Resistance or frustration when normal verification questions are asked; and
• Applicant, ownership or payment info that is difficult to independently confirm.
The point isn ' t to treat every unusual transaction as fraud. It is simply to recognize when a transaction deserves a second look.
WHAT SHOULD YOUR AGENCY DO?
Slow down. Fraudsters often benefit from urgency. Your agency doesn ' t have to adopt someone else ' s deadline simply because they " insist ".
Verify info independently. When something doesn ' t look right, use reliable sources to confirm ownership, property details and other info rather than relying solely on what the applicant has provided. County appraiser / assessor records can be quite helpful in verifying info, as can a county’ s Geographic Info System(“ GIS”).
Ask about unusual payment arrangements. If the person paying the premium, the bank account holder, and the named insured don ' t line up as you would expect, ask why. There may be a completely legitimate explanation but get the explanation before proceeding.
1. Follow your agency ' s procedures. Consistent procedures matter. This is also where there is a small E & O lesson hiding inside a fraud-prevention story. Established procedures for applications, binding, documentation, payments, and refunds don ' t just make an agency more efficient. They help protect the agency when an unusual situation arises. 2. Be careful with refunds. Particularly following a recent electronic payment, follow carrier and agency procedures before returning premium. Make sure the original transaction has cleared and be cautious about requests to send refunded money somewhere other than where it originated. 3. Document what happened. If something seems unusual enough that your agency pauses or declines a transaction, make a factual note about what occurred and why additional verification was needed. 4. And finally, trust your instincts.
Experienced insurance professionals develop a pretty good sense for when a transaction simply doesn ' t feel right. That doesn ' t mean making assumptions about a customer or accusing someone of fraud. It means recognizing that asking one more question – or taking another day to verify the info – is sometimes the smartest service you can provide to your agency.
Our member did exactly that. They didn ' t know they were looking at a scam. They simply recognized that several pieces of the transaction weren ' t fitting together and decided not to let someone ' s sense of urgency override their normal judgment and procedures.
That ' s a lesson worth sharing.
Sometimes the best new-business decision an agency makes is knowing when to stop and ask a few more questions. As the great Ted Lasso says,“ Be Curious, Not Judgmental.” What I like to say is I have questions and then my questions have questions! •
SEPTEMBER / OCTOBER 2026
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