The California Department of Insurance has arrested a Texas man for selling fake insurance policies. Apparently, this individual had his insurance license expire, but continued to sell policies for almost 4 years. He had offices in Texas, California and New York.
There is a lesson out there from this: check to make sure your agent and/or broker is licensed. The Department of Insurance website allows you to do this pretty easily. Also, Google your agent and/or broker. It is an easy way to see what is out there. This guy had a 2002 cease and desist that I found online. I know it can be a pain, but by taking a few minutes, you can avoid becoming the victim of a scam.