Department of Commerce and Regulation
For Immediate Release: December 4, 2001
For More Information: David Siebrasse, 605-773-6325

Insurance Fraud Unit Warns Consumers about Dental Insurance Scam

(Pierre) -- The South Dakota Insurance Fraud Unit is warning consumers about a group dental insurance scam.

A company called Omaha Mutual Dental Benefits Group is sending faxes to businesses attempting to lure employees into purchasing a group dental plan. The scam offers dental coverage for an initial payment for families of $199.00 and then an additional $19.95 per month. The cost for one individual is an initial payment of $199.00, plus $14.95 per month. 

An investigation conducted by the National Association of Dental Plans and the Texas Insurance Fraud Unit concluded that the operation is a scam. The company was initially operating out of Dallas, Texas, but shifts its business from one location to another to avoid apprehension. Additionally, the Nebraska Insurance Fraud Unit has confirmed through Mutual of Omaha Insurance Company that this dental plan group is in no way associated with their company.

Although the South Dakota Insurance Fraud Unit has received no complaints from consumers in South Dakota, fraud units in California, Texas, New Jersey and New York have received complaints about the scam from insurance customers.

"We want to be proactive and stop this scam before anyone in South Dakota becomes a victim," said David Siebrasse, Chief of the South Dakota Insurance Fraud Unit. "We want to warn people so they can avoid getting involved with this company."

The Fraud Unit advises any person who comes into contact with this company or scenario to proceed with caution and notify the Insurance Fraud Unit immediately. You can contact the Insurance Fraud Prevention Unit, South Dakota Division of Insurance at 605-773-6325. The Unit can also be reached by writing: 118 West Capitol Ave., Pierre, SD 57501. More information on insurance fraud can also be obtained by visiting the Unit's website at http://www.state.sd.us/dcr/insurance/fraud/index.htm

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