Definition - What does Unauthorized Insurance mean?
Unauthorized insurance is insurance that is not legitimate. Unauthorized insurance provides no actual benefit because the policies are either scams, or because the insurer is not permitted to do business in the state or region of interest. Unauthorized insurance is the illegal or fraudulent alternative to authorized insurance, which is insurance that is permitted and recognized by the law.
Insuranceopedia explains Unauthorized Insurance
Unauthorized insurance can be a real problem for the misinformed people who buy it. These people will not only lose hundreds or thousands of dollars in premiums, but if they ever file a claim, it won't be covered. This could amount to the person being responsible for damages in the tens, or even hundreds of thousands of dollars. An example of unauthorized insurance would be an insurance company that is only legally allowed to cover citizens of Wyoming offering policies to citizens of Idaho.
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