Fraud on the rise?

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PostPosted: Tue Apr 01, 2008 7:04 am   Post subject: Fraud on the rise?  

I'm reporting more and more about insurance fraud on my daily insurance news blog. Do you think as economic times worsen, we'll see more of this?


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davet.
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PostPosted: Tue Apr 01, 2008 7:21 am   Post subject:   

what blog are you talking about?


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PostPosted: Tue Apr 01, 2008 9:49 am   Post subject:   

Welcome to the forum,



You bring up a good point, I think as people get more and more desperate that the possibility of fraud being on the rise is a very good possibility. I think that insurance companies are aware of this though and it will be their natural instinct to watch out for bogus claims. You bring up a good point.

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PostPosted: Tue Apr 01, 2008 4:16 pm   Post subject: blog  

sorry anonymous 123.... i was talking about my insurance blog.



dailyinsurer.blogspot.com


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PostPosted: Tue Apr 01, 2008 5:40 pm   Post subject:   

I have investigated more than 2500 cases of insurance fraud in the past 15 years and I don't think it's necessarily getting any worse. I think people like us (sites like this, blogs like yours, media attention, and companies like mine) are making the average insurance-consumer smarter.



In psychology, it is taught that people are more apt to talk about things they are familiar with than something they know absolutely nothing about. Those of us who have ever spent time on a golf driving range will probably agree that the worst ball-striker in the whole place is usually the one giving the most free lessons.



Generally speaking, unless we are at least familiar with a topic, the embarrassment factor tells us to keep our mouths shut and play dumb. However, once we know even a little bit about something, we want to share it with everyone - human behavior 101.



Thus, the "smarter" insurance-consumer is now learning how to tell if a policy is bad or an agent is a lying crook and wants to tell everyone about it. From this word-of-mouth is coming increased awareness and publicity.



So, like I said, the fraud doesn't necessarily have to be getting worse, the public is just getting smarter.











With this knowlege comes the desire to share



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PostPosted: Wed Apr 02, 2008 4:04 am   Post subject:   

It would really depend on your definition of fraud. I know….. fraud is fraud. But is there a difference of an insured having someone take their truck and burn it and then claimed it was stolen and another insured adding a couple DVDs to their inventory list of their fire claim or someone claiming old water damage on a ceiling happened a day ago when they had a hailstorm? When does minimal padding of a claim become fraud?



The general public does not see the second two as fraud since they have paid all those years for a policy that they have never used. My personal experience is that there was some degree of fraud in at least 50% of the 1st party claims I've handled. (3rd party claims are a whole different animal). Is it things I could prove or that the carrier would even pursue….no… but it doesn't mean it wasn't there.



Will the economy raise the occurrence… not sure. But I do agree with InsInvestigator, insureds and claimants are gaining more insurance knowledge. By itself this knowledge is a good thing as too many people have been insurance dumb for too long, but it also allows some people to use this to their advantage to obtain benefits that they are not entitled to.

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PostPosted: Wed Apr 02, 2008 6:24 am   Post subject:   

Dasfuk, great post! You made some very good points. Let me ask you (and anyone else who reads this post) a question.



Have you purchased a life insurance policy in America since 1983?



If so, there is a 40% chance that it is bad and will never benefit anyone other than the agent who sold it and the insurance company. That's 4 out of every 10 policies in America! And this is a fact that cannot be disputed.



Trust me, in the hundreds of hours I have spent in depositions, many defense lawyers have tried to ram that fact down my throat and have never been successful. It is still on my website.



Think about it; if you lined up 10 claims adjusters, CEOs, Federal Judges,

SIU members, the butcher, baker, and candlestick maker, 4 of every 10 would be an insurance fraud victim - and they don't even know it.



That's not due to the guy who pads his claim; it is the lying, cheating, thieving, agents who to rely an trickery and misrepresentation to sell a policy.



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PostPosted: Wed Apr 02, 2008 3:58 pm   Post subject:   

one of the reasons i started my insurance blog was from my experience as an insurance reporter covering among things - insurance fraud. it is frustrating for many of the folks i talked to over the years because they don't have the manpower, and in some cases, the experience to weed out the fraud. hopefully talking about it more will make more people aware of it. for all the citizens out there that commit fraud, it has been disturbing over the years to see the numbers of people within the industry doing it too. more discussion, knowledge, etc. is a good thing as investigator said earlier.


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PostPosted: Wed May 16, 2012 7:52 pm   Post subject:   

Yes, actually they are very rampant online, in the internet.. the best we can do is tell the truth and report the fraud ones. Crying or Very sad

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PostPosted: Thu Jun 14, 2012 7:18 pm   Post subject:   

You are right. They lower the image of insurance company.

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PostPosted: Thu Feb 21, 2013 5:34 am   Post subject:   

Yes fraud case of insurance increased very fast govt. must have to take effective step.



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PostPosted: Wed Nov 06, 2013 3:28 am   Post subject: Insurance fraud on the rise  

Yes, as a matter of fact one, of the worst assurance parts of insurance fraud that is going on now is Examfx and their affiliates get's 73,000,000,000 hits daily from consumers trying to enter the various hottest trades. I wonder what they do with the personal data of every body who didn't pass the state exams? I wonder if they sale the data to list servers and that's how I keep on getting insurance ads in my mailbox from companies that I didn't request to contact me, Hmm?

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PostPosted: Fri Nov 08, 2013 12:05 am   Post subject:   

Quote:
73,000,000,000 hits daily
LMAO! 73 BILLION? I seriously doubt it. Besides, this has nothing to do with insurance fraud.

Quote:
I wonder if they sale the data to list servers and that's how I keep on getting insurance ads in my mailbox from companies that I didn't request to contact me, Hmm?
I don't suppose you ever took the time to read their privacy notice did you?


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PostPosted: Fri Nov 08, 2013 3:42 am   Post subject: Pre-Licensing Law per State per industry  

Nothing to do with insurance huh? Are we the only industry that requires per-licensing, for our future trades? Why pay this hum-doe, to pre-licensing educators if it has nothing to do with taking a test, to get a insurance license in our case, to qualify to solicit financial services L & H disability and/or Property & Casualty and or Adjusters, etc? And everyone doesn't pass the first time like they Guarantee! Some take the test several times and pay hundreds and still don't pass. Could be the material is whack? So, what do they do with all of the data? Throw it away? Send it to the outer space twilight zone?, Or just let it set there until an idea comes into their heads? In criminal law, fraud is intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent, and verb is defraud. Fraud is a crime and a civil tort at common law, though the specific criminal law definition varies by legal jurisdiction. Defrauding people or entities of Money or Valuables is a common purpose of fraud.


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PostPosted: Fri Nov 08, 2013 3:12 pm   Post subject:   

Quote:
Are we the only industry that requires per-licensing, for our future trades?
No. Doctors and lawyers, nurses and engineers, and many others also go through "prelicensing" education, too.



Quote:
Nothing to do with insurance huh?
Learn not to misquote . . . I did not say it had nothing to do with insurance, but that it had nothing to do with INSURANCE FRAUD.



Quote:
Defrauding people or entities of Money or Valuables is a common purpose of fraud.
That's correct. But making the link to insurance fraud as you did is inaccurate. You can press your claim for misrepresentation, and you could attempt to sue for fraud, but not for insurance fraud. No insurance policy or claim, agent or company is involved in this "guarantee".



Quote:
And everyone doesn't pass the first time like they Guarantee!
Guarantees such as this are dubious at best, and only believed by those who fail to read on: "If a student fails the licensing exam within three days after scoring 80% on the Guarantee Exam, we will refund the cost of the material when provided with a copy of the exam results and access code."



That's the real guarantee. Like a smog test . . . "pass or don't pay". The "don't pay" has nothing to do with the first test, only with a re-test after repairs are made.



With ExamFX one has to take the state exam within three days of scoring 80% on their "Guarantee Exam". Putting those two things together is nearly impossible. So I would agree that although the guarantee is nearly worthless, it fails the fraud test because it is possible for someone to comply with their 3-day requirement.



Does everyone who goes to college leave with a degree? No. Does everyone who graduates with a BA on the Dean's List find a job within three days? No, and that's not fraud either.



Quote:
Some take the test several times and pay hundreds and still don't pass. Could be the material is whack?
And it could also be that the individual doesn't comprehend the material.



I've been teaching live prelicensing courses since September 2000, and writing curriculum for them since 2005 (but never for ExamFX). My students do not all pass on the first attempt, and I don't guarantee that they will. But for as long as I've been teaching, my first-time pass rate has been in the 90%+ category. And some of the material I've had to teach with was not of the best or most up to date information. My students passed because I provided them with the correct information they needed. That's sometimes the most important difference between a live class and a cheap online course.



And some who took my class also never took the exam. That's on their dime.


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