Officials from the state of Michigan is cautioning motorists to look into their coverage.
The Michigan Office of Financial and Insurance Regulation (OFIR) has released a warning to drivers in the Detroit area, stating that they may have purchased auto insurance policies that were fraudulent.
All of the fraudulent policies come from a single agent from one agency in the Southfield.
The agency in question is unlicensed and is being operated under the name Al Baraka Enterprise, located in Southfield, near Detroit. The agent who has been selling the auto insurance policies is also unlicensed, and is named Shaker Uddin Sadeak.
Drivers who have purchased these auto insurance policies are warned that they are not covered.
An investigation performed by the OFIR discovered that Sadeak had been selling fake certificates that claim to provide coverage through a legitimate insurer. The insurance news release by the office explained that the OFIR had been notified of the unlicensed agent’s questionable behaviors after having purchased coverage from him.
The driver had noticed a number of discrepancies, such as spelling errors, on the insurance certificate that had been issued, which led to a call to the OFIR to alert them as to the possibility of fraud.
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Both the agent and the agency have been ordered by the Michigan OFIR to cease their unlicensed auto insurance sales. The news release by the office also stated that the results of the insurance fraud investigation have also been turned over to the police.
The commissioner of the OFIR, Kevin Clinton, has announced within the auto insurance news release that any driver who has purchased a certificate either through that agency or from the agent must purchase legitimate auto insurance right away. Clinton also requests that anyone who has one of the fraudulent certificates should phone the OFIR through their toll-free number (877-999-6442).
In Michigan, all agents selling auto insurance and other kinds of coverage must have a license and must display that certificate within their offices. Consumers are being warned to ask the agency and the agent to see a copy of those licenses before purchasing a policy. They can also visit the OFIR website to verify whether or not those professionals are licensed to do business within the state.