Tag: insurance fraud

State Farm Insurance company loses Katrina fraud verdict from Supreme Court

Logan B.
State Farm Insurance

Two whistleblowers have had their victory upheld by the top court in the United States. This week, the Supreme Court upheld a ruling against State Farm Insurance firm. The insurer has been found guilty of defrauding the U.S. government following Hurricane Katrina. The top court upheld a jury verdict that said the insurance company fraudulently assessed damage from the 2005 storm. The Supreme Court’s ruling was a unanimous 8-0 to uphold the verdict from the lower court. The State Farm insurance company challenged the decision of a lower court. That…

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Zenefits California insurance company must pay $7 million fine

G. Turner
California Insurance company Fraud scam

The insurer was charged the fine by the state’s regulator for the use of certain software to illegally license staff. California insurance company, Zenefits, is now facing a fine of $7 million from the state’s regulator. This fine is primarily the result of the insurer’s use of software that made it possible to complete the pre-licensing coursework in a period of time below the state requirement. The California Department of Insurance penalized the health insurer with the multimillion dollar fine, last week. As a result, Zenefits is now facing one…

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Insurance fraud plot led Vietnam woman to cut off her limbs

Julie Campbell
insurance fraud scam hit by train

The woman has admitted to paying for an amputation to be able to make a claim on a policy. A Vietnamese woman has now admitted to a gruesome form of insurance fraud. In order to obtain a payout on a policy she held, police say she claimed to have been hit by a train. In truth, she had paid to have her foot and part of her arm cut off. The woman was thirty years old at the time and pretended to have been struck by a passing train. Ly…

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NYPD caught burning vehicles for fraudulent insurance claims

G. Turner
life insurance scam

The police officer was busted by federal investigators who caught him torching two cars and a Range Rover. Fraudulent insurance claims were the center of a scheme implemented by an NYPD officer. He was caught after having burned a Range Rover in addition to two of his other vehicles. By the time feds caught him, GEICO had already issued at least $34,000 in reimbursement payments. Carlos Becker promised two men money in exchange for their assistance in crashing and burning his Range Rover. That was back in September 2012. The…

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Auto insurance fraud suffers a blow in the United Kingdom

Marc
auto insurance young drivers UK

UK Ministry of Justice puts an end to compensation for minor whiplash injuries The United Kingdom government is working to combat auto insurance fraud and the Ministry of Justice is putting an end to compensation for minor whiplash injuries caused by car accidents. Instead of receiving compensation from their auto insurance providers, their rehabilitation will be paid for, which the government expected will save consumers an estimated $1 billion a year in insurance costs. Moreover, cutting down of fraudulent claims may lead to a decrease in auto insurance premiums. Changes…

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