Life insurance fraud culprits caught faking death

insurance fraud

A family has been accused of making false claims on a number of policies totaling over $1 million. A former resident of Toronto, Canada, was discovered living in California after having made claims on several life insurance policies in his name half a decade ago, allowing his family to collect. This fraud against the insurers racked up payouts of over $1 million for the individual’s family. The fraudsters took out a number of life insurance policies on the man and then faked his death so that they would be able…

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Life insurance bill takes aim at reducing fraud

Massachusetts homeowners Insurance

Massachusetts Governor Deval Patrick is now deciding on his approval for regulations in the industry. Deval Patrick, the Governor of Massachusetts, is currently considering a bill that has been created in order to help to combat life insurance fraud by adding regulations to brokers and financial service companies that purchase policies from cash starved policyholders and then receive the benefits upon the death of those individuals. The sale of an individual’s policy for a fraction of its settlement total is both legal and common in Massachusetts. This is the case…

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Rhode Island legislator suspected of insurance fraud, charged with misappropriation of funds

A lawmaker from Rhode Island is being accused of insurance fraud. Representative Leo Medina was charged with misappropriation of funds yesterday stemming from an policy check issued late last year. The check was a payout from a life insurance policy which was originally intended for one of Medina’s friends whose daughter had died. Medina allegedly kept the majority of the money for himself after helping his friend, who does not speak English, obtain a payout from an insurance company. Insurance fraud has been a growing concern throughout the nation in…

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California District Attorneys awarded million in grants to fight insurance fraud

California’s Department of Insurance is issuing over $3 million in grants to the state’s District Attorneys in an effort to battle the spread of fraudulent disability and health claims. The state has been wracked with fraud for several years, a fact that Insurance Commissioner Dave Jones has labored to rectify. According to Jones, the grants will be used to fun investigations and prosecutions as the state government looks to crack down on insurance fraud. Jones hopes that the move will also dissuade individuals from committing fraud, knowing that District Attorneys…

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Delinquent life insurance pay outs being investigated

As insurance companies from around the nation begin to crack down on fraud, some are finding themselves accused of the very thing they are trying to expunge. Such is the case with Metropolitan Life Insurance Co. The insurer is accused by the state of California of not paying life insurance benefits after finding out that the policyholder had passed away. The state is getting ready to investigate the practices of the company in an effort to determine whether these allegations are true or false. Earlier this week, Insurance Commissioner Dave…

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