The Baseball Card Scam
JAN 18
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Insurance Fraud Costs Everyone

Fictionalized True Crime Story of Insurance Fraud from an Expert who
explains why Insurance Fraud is a “Heads I Win, Tails You Lose”
situation for Insurers. The story that follows are designed to help
everyone Understand How Insurance Fraud in America is Costing Everyone
who Buys Insurance Thousands of Dollars Every year and Why Insurance
Fraud is Safer and More Profitable for the ­­­Perpetrators than any
Other Crime.

The insurance industry, unintentionally, instructs its insureds how to
successfully perpetrate insurance fraud. Insurers encourage fraud by:

1. decimating its professional claim staff by short-sighted cost
cutting.
2. by selling insurance to persons unknown to the company or the broker.
3 by accepting the word of new applicants without a pre-risk survey.
4 by allowing threats of bad faith lawsuits to intimidate the company
into a quick settlement.

Why A Retail Baseball Card Store Was an Invitation to Fraud

The husband and wife had failed in several tries to conduct a profitable
retail business. They simultaneously closed their comic book store and
opened a new business called Out In Left Field where they sold baseball
cards in the 1980’s at the apex of the baseball card fad. They located
in a new, strip shopping center, in a residential area of Fresno,
California.


This type of loss will continue to occur as long as insurers fail to
maintain adequately trained claims and underwriting staff. If insurers
continue to accept insureds at face value without any pre-risk
inspections or investigation this type of loss will multiply. Insurance
agents and brokers will have their loss ratios increase logarithmically.
Profits will fall because they did not inspect and control the risks
they insure.

Adapted from my book, Insurance Fraud Costs Everyone Available as a Kindle Book and a Paperback from Amazon.com.





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