Buyer Beware: The Perils of Relying on Unlicensed Agents

What is an Agent?

An agent is a person who is licensed to sell health insurance. They are required to understand the health insurance market and to provide you with unbiased information about your options. They can help you find the right plan for your needs and budget.

What is an EDE?

An EDE is an electronic data exchange. It is a system that allows insurance companies to communicate with each other and with government agencies.

What is an NPN?

An NPN is a National Producer Number. It is a unique identifier that is assigned to every licensed insurance agent.

What is ACA?

The Affordable Care Act (ACA) is a federal law that was enacted in 2010. The ACA has made it easier for Americans to get health insurance and has provided financial assistance to help people afford coverage.

What is CSR?

CSR stands for cost-sharing reduction. CSR is a subsidy that is available to people who have low incomes. CSR can help to reduce the cost of your health insurance premiums and out-of-pocket costs, such as deductibles, copays, and coinsurance.

Case Example

The client in the post is in a difficult situation. She provided her personal information to an unlicensed agent who is now changing her ACA plan without her consent. The client is at risk of losing her health insurance coverage or being enrolled in a plan that does not meet her needs.

How to Avoid Scams

There are a few things you can do to avoid scams:

Only work with licensed agents. You can find a licensed agent in your state by visiting the website of your state’s insurance department.
Be wary of websites that promise to “get you the best deal” on health insurance. These websites may not be affiliated with any insurance companies and may be trying to sell you a policy that is not right for you.
Don’t give your personal information to anyone you don’t know. If you are asked to provide your personal information, be sure to ask why the information is needed and how it will be used.

What to Do If You’ve Been Scammed

If you believe you have been scammed, you should contact your state’s insurance department. The insurance department can investigate the complaint and take action against the unlicensed agent.

How to Get Help

If you need help finding a licensed agent or if you have questions about your health insurance coverage, you can contact the National Association of Health Underwriters (NAHU). NAHU is a professional organization that represents licensed health insurance agents.


It is important to be aware of the risks of relying on unlicensed agents. By working with a licensed agent, you can be sure that you are getting the best possible advice and that your personal information is protected.

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