State Insurance Department warns of phony holiday package protection

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Yes, there are real Scrooges out there this Christmas. Just ask the Oklahoma Insurance Department as it issued a warning to consumers to be aware of unlicensed insurance providers offering “package protection” that includes stolen-item protection.

 These providers facilitate the unauthorized sale of insurance, which can cost consumers money while not providing protection for stolen items.

“When shopping online for the holidays, pay close attention to your shipping protection options and who is offering the coverage,” Insurance Commissioner Glen Mulready said. “Legitimate shipping insurance providers will be licensed companies or producers.”

Unauthorized insurance sales are illegal and happen outside the control of regulatory agencies. If these providers become insolvent or are unable to pay for consumer claims, the Oklahoma Insurance Department may not be able to intervene.

Consumers can protect themselves by checking to see if providers listed on the web are licensed insurance entities through the Licensee Lookup tool on our website. Be sure to follow the bulleted guidance on this page to find the company or insurance producer offering shipping protection in Oklahoma.

Homeowners policies might help cover the theft of an online purchase left on your porch. This is best for high-value items worth more than a policy deductible.

For any questions about the unauthorized sale of insurance or to report suspected insurance fraud by a licensed producer, please contact OID at 800-522-0071 or visit

Source: press release