Will Your Insurance Company Charge You With Fraud If You Have Claim?

Insurance Companies Are Paying Cops To Investigate Their Own Customers

This article is extremely long.

But you might want to read it. At least part of it. 

In an investigative report the journalist documents 4 insurance companies who have had police (paid by the insurance companies) charge their own customers with insurance fraud. There is also payment for prosecutors who charge and prosecute the insurance customers for fraud with evidence provided by the insurance company. 

The results are devastating from huge sums of money for defense to actual prison terms.

Seems to me good reason to NOT buy insurance. Save your own money and pay your own claims.

~tannngl

PS:  Here’s a little snippet from the article.

The mood was jovial. Enjoying drinks and catered meals, insurance company investigators and police detectives greeted one another as old friends, swapping war stories and trading the latest tips and tricks from the field. Vendors pitched surveillance services and social media monitoring software that allow investigators to covertly track policyholders suspected of fraud. Police officers in business casual attire, mindful of the lucrative investigative jobs open to former law enforcement officers, marveled at how easily insurers were able to obtain the kind of private information that law enforcement can get only with a court order — bank and phone records, for example — thanks to policy contracts that require customers to cooperate with investigations.

Versions of this fraud conference occur across the country. But nowhere is the relationship cozier than in Pennsylvania, where the state Insurance Fraud Prevention Authority not only organizes the annual meeting, but pays the salaries of dozens of police officers and prosecutors.

You really should read this.

About tannngl

Believer (God the Father, the Son and Messiah, the Holy Spirit), daughter, wife, mother, memaw, RN, hobbit, street evangelist I love people, music, reading, praying, studying the Bible, keeping up with national news and politics. I am a strict constructionist, a true American. I love my country. I honor her warriors. I am thankful for our Constitution and will personally bear arms for it.
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8 Responses to Will Your Insurance Company Charge You With Fraud If You Have Claim?

  1. CW says:

    Interesting article, tannngl. On the other side of the argument we have this reality:

    “Insurance fraud is a real problem. Entire organized crime rings are dedicated to staging accidents in order to collect insurance money, for example, and industry groups say phony claims cost insurers billions of dollars a year, much of which is passed along to customers in increased premiums. Insurers say that funding police and prosecutors, and referring criminal cases to them, is critical to efforts to root out fraud, since many law enforcement agencies lack the resources or expertise to bring complicated cases.”

    In sum, insurance fraud is a big problem with real victims but the attempted solution opens the door to equally big problems with equally real victims. It’s one of those classic situations where what should work in theory is corrupted by bad individuals, and the solution always seems clear and simple to me: impose painful consequences for those who act corruptly on either end.

    How many insurance investigators would abuse the process for uncovering fraud if they faced criminal charges themselves for any malfeasance? How many cops would fail to properly do their duties if they could end up losing their jobs and going to jail for a very long time? But since the article never talks about this I can only assume that the consequences for fraudulently railroading people on insurance crimes are nonexistent. Is it any wonder that the situation has run amok? Zero accountability is an open invitation to corruption.

    Liked by 2 people

    • tannngl says:

      There is the other side of this. Fraud does exist.
      My problem is I absolutely despise insurance. Whether health care, vehicle, house, whatever, people have found a good way to line their pockets with your bet that you will need them for payouts. If we only saved our own money and paid our own claims to ourselves we wouldn’t need so much insurance. So this article made me furious. We don’t carry comprehensive etc on our vehicles, only the state required liability and now I’m glad. State Farm is our company and they are one of the companies named in the article.
      These victim customers are not even allowed to take their case to court to receive relief from the insurance company. Big Insurance has lobbied state legislators to not allow suits against them. Every insurance contract has small print stating that in purchasing this insurance you will use only arbitration in the case of disputes. You must have car insurance so they have the upper hand. Nice.

      I’ve already learned that in our justice systme there are many tiers and there are those who never recieve justice and those who are never punished for crimes.

      Good comment, CW. And thank you. As an aside, I’m not getting all my notices from WordPress. Got Lauren’s but not yours. And I see you have posted to your blog and I haven’t gotten the notice. I need some time to work on this. I’ll figure it out!

      Liked by 1 person

      • CW says:

        I understand, tannngl. It really is amazing what the almighty dollar does to people’s character. I’d like to see ALL of the bad guys get their due. Sigh.

        I’m pathetic when it comes to technology but my blog is at Blogger instead of WP so maybe that’s the root of the problem.

        Liked by 1 person

  2. Lauren says:

    Reblogged this on Lauren Creech's Random Thoughts and commented:
    Holy cow. That is just revolting, though in this day and age of no morals shouldn’t really surprise any of us.

    Liked by 1 person

  3. foguth says:

    I’ve also heard there have been cases where insurance companies knew a client of their life insurance had passed and knew who the beneficiary/s were BUT didn’t pay unless the benefits were applied for. I’ve also heard there have been instances when insurance companies denied health benefits the first time – no matter if valid or not – because they knew a percentage of their clients wouldn’t bother contesting the ruling and thus, they saved money.
    I despise insurance companies and the politicians who put through laws that force us to buy many types of insurance.

    Liked by 1 person

    • tannngl says:

      Ah, Foguth! We are sisters of a feather! My dad always thought insurance was important and insured everything. But when I married my husband, my father-in-law was totally against insurance! Over the years I have seen that he is right. It is a scam. It’s prefaced on taking our dollars unnecesarily. Then they get the state to make it mandatory.
      Thanks for chiming in! Didn’t know about the death benefits requiring application. I knew health care is very careful with their claims but didn’t realize some always deny a claim at first!
      We live in an age where everyone is out to get our money!

      Liked by 1 person

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