Better Business Bureaus do not give opinions or advice on the types of insurance policies which consumers should purchase. Different goals and needs of individuals and families are primary factors to be considered when determining the particular insurance program best suited to one's requirements. However, any consumer who is considering replacing an existing insurance policy with another policy and who is not experienced in insurance/financial/investment matters, should seek advice from one who has expertise in the field and in whom the consumer has confidence. Prudent actions would include:
1. Ask the representative selling replacement insurance for a written proposal, a comparison disclosure statement and a copy of the policy or policies being offered.
2. Have your current insurance agent give you a written comparison of your existing insurance with the proposed replacement insurance so as to assist you in determining whether it is to your advantage to change to another insurance program.
3. Always obtain a receipt from any person to whom you release your policies for review.
4. Make sure that the insurance underwriter, or carrier, and the agent offering replacement insurance are properly licensed to do business by the Insurance Department in your state.
5. Satisfy yourself regarding the performance records of any insurance company and the competence of any agent BEFORE assuming obligation. Stability and soundness of any company and its agents are vital factors to be considered when purchasing an insurance policy/policies.