Live Insurance News

Workers compensation scam in California leads to 26 arrests

April 24, 2017April 22, 2017 G. Turner

workers compensation scam insurance fraud

Among those who were arrested were three doctors in the Orange County area. A massive number of arrests have resulted from a California workers compensation scam that was recently busted. Among the arrested individuals were three doctors. Two of the doctors were from Newport Coast and another doctor was from Huntington Beach. In total, there were 26 arrests including business owners and medical professionals. The workers compensation scam is estimated to have swindled insurance companies and consumers out of $40 million in kickbacks and fraudulent insurance billing. This, according to…

Life insurance scam when husband sends hitman’s instructions to ex-boss

February 24, 2017February 22, 2017 Julie Campbell

A man allegedly texted “kill my wife” in a text to the wrong person when he wanted the woman murdered. A Washington man attempted to run a life insurance scam by hiring a hitman to kill his wife but ended up texting the information to the wrong person. The 42 year old father allegedly attempted to text the killer, but sent the message to his former boss, instead. Upon receiving the more-than-concerning text, the ex-boss proceeded to call the police to investigate. The man, Jeff Lytle, was arrested on two…

Allstate files insurance fraud lawsuit against chiropractors

February 8, 2017February 6, 2017 H. Cutner

The suit alleges that three Providence practitioners were involved in a scheme to defraud the insurer. Allstate Insurance Company has filed a lawsuit accusing licensed chiropractors of insurance fraud. The suit specifically points to the owner of a clinic. The owner is accused of falsifying medical records in order to increase the size of the insurance claims. The owner also allegedly paid kickbacks to personal injury lawyers in order to receive client referrals. The insurance fraud lawsuit was filed with the U.S. District Court. Within it, Allstate alleges that Arianna…

Homeowners insurance fraud case of exploded home leads to sentencing

December 26, 2016December 21, 2016 G. Turner

The woman who blew up her house to scam her insurer has received her sentence from an Indiana judge. A woman who blew up her house in a dramatic case of homeowners insurance fraud has been sentenced to 50 years in prison. The explosion killed two of the woman’s neighbors and destroyed a part of an Indianapolis subdivision in November 2012. Monserrate Shirley pleaded guilty and will be facing the maximum number of years in prison for her crimes. In early 2015, the 51 year old woman pleaded guilty to…

Insurance fraud plot led Vietnam woman to cut off her limbs

August 30, 2016August 26, 2016 Julie Campbell

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…

Scam travel insurance claims are becoming more commonplace

March 25, 2016March 23, 2016 Julie Campbell

According to recent data the most rapidly growing coverage segment is also a massive target for scams. Though auto policies have traditionally been the area in which insurers have traditionally had to be the most vigilant in watching for scammers, travel insurance has suddenly started to see the emergence of a new trend in false claims. The General Insurance Association (GIA) has reported that this insurance sector is growing exceptionally fast. The GIA has noticed this trend as a growing number of people travel overseas and recognize the importance of…

Fraud is delivering a blow to health insurance exchanges in the US

November 25, 2015November 24, 2015 Marc

Health insurance exchanges are working to fight fraud Fraud in health insurance exchanges throughout the United States may draw more criticism toward the Affordable Care Act. The federal health care reform law was meant to bring health insurance coverage to millions of people through the establishment of exchange marketplaces. While the law has succeeded in this endeavor, these exchanges are struggling to combat fraud coming from those that want coverage and want to take advantage of the electronic system governing these exchanges. Brokers are using fictitious information to enroll individuals…