GAHZLY

AUTOPOST by BEDEWY VISIT GAHZLY

Unfortunately, the insurance industry has always reported incidents of fraud, whether it be in relation to homeowner insurance, business, auto, life, umbrella, or even bonds. No niche, however, is so vulnerable to fake claims as workers compensation. Read these eye-popping cases, and join the insurance companies’ fight against fraudulent activity. Robbing from the Rich to Give to the Poor This may seem straight from the fairy tale books, but it’s true! An elderly physician was found guilty of workers compensation fraud. His criminal activity consisted of filing dishonest insurance claims totaling more than $170,000. The ‘good’ doctor pleaded with the sentencing judge for mercy as he explained the facts of his crime. What made him different than other thieves was that he had deliberately overcharged patients who had their medical bills paid for by workers comp coverage. In this way, he was able to service patients who could not afford to pay out of their own pocke...

Life insurance fraud is a black eye on both life insurance companies and life insurance customers. Both parties have been guilty of life insurance fraud and will be again–especially since, sadly, fraud seems to be on the rise according to most statistical measures. Research by the non-profit The Coalition Against Insurance Fraud concludes that life insurance fraud committed by all parties costs an average household $1650 per year and increases life insurance premiums by 25%. Life insurers are most often guilty of insurance fraud in the form of their agents doing “churning”. This is where the agent seeks to cancel your existing life insurance policy and replace it with a new policy that is paid for by the “juice”, or cash value, in your existing policy. Agents do this to earn more commissions for themselves without having to seek new prospects for business. Churning can result in increased premiums for a customer and clearly costs them out of their cash valu...