Insurance scoring is a new tool being used by the insurance industry when determining eligibility and pricing for personal insurance coverage’s. This practice has long been used by the banking/mortgage industry, but it is a fairly recent development for the insurance industry.

A direct link has been found between credit scoring and claims frequency. In general terms the higher the credit score the less likelihood there will be to have future claims. This credit scoring does not replace any existing underwriting rules; it simply adds a tool for the underwriting of personal insurance coverage’s.

Identity Fraud Expense Coverage

We have all heard a lot recently about Identity Fraud, which results from someone stealing your social security number and or other financial account information to impersonate you. Although you are generally not responsible for the debts these criminals accumulate, you are frequently faced with significant legal fees and a considerable time commitment to restore your credit standing. Identity Fraud expense coverage is now routinely available from most home insurance carriers including cost for notarizing affidavits, certified mail, notification to law enforcement, lost income, and reasonable attorneys fees.

"Phishing" Scams

Internet "phishing" scams are one of the fastest-growing frauds today. Phishing typically involves a bogus e-mail message that uses legitimate materials, such as a company's Web site graphics and logos, in an attempt to entice e-mail recipients to provide personal financial details, such as credit card and Social Security numbers.

Financial institutions, government agencies, retailers, credit card companies and many other organizations have seen their Web site graphics, including corporate logos and other materials, "borrowed" by fraudsters intent on tricking consumers into divulging personal financial information by responding to an official-looking, but entirely bogus, e-mail. Like many cons and scams, phishing preys on the unwary. Here's how you can keep your guard up, and help fight back against this form of fraud.

TAKE SOME SIMPLE PRECAUTIONS:

Never respond to an unsolicited e-mail that asks for detailed financial information. Know whom you are dealing with.

Report anything suspicious to the proper authorities. Alert the company or government agency identified in the suspect e-mail through a Web address or telephone number that you know is legitimate.

You can also contact the Internet Crime Complaint Center at www.ifccfbi.gov, a partnership between the FBI and the National White Collar Crime Center - if you think you have received a phishing e-mail or have been directed to a "phishing-looking" Web site.

Consumers should never provide their personal information in response to an unsolicited telephone call, fax, letter, e-mail or Internet advertisement, say the Federal Deposit Insurance Corp.

The bottom line: Don't get hooked by fraudulent phishing attempts!