Two Californians Nabbed for Auto Insurance Fraud

September 14, 2009

  • September 14, 2009 at 8:15 am
    Centtral Coast Agent says:
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    Maybe 35 years ago (before the original GEICO bellied up) I had an auto client that came in to cancel his auto policy as he found a better rate at GEICO. I told him if he had not already bought the policy he should either have me date the canc. release to a later date or come back to sign it. He insisted that it be immediate. He T-boned a car in our prkg. lot on his way to GEICO. He came back in and said he had changed his mind…I said I hadn’t. He got the GEICO policy within the hour and waited a few days to turned it in and GEICO bought it. They never looked out their window at his car’s freshly smashed front end. He took great joy in coming back later and telling me how he pulled it off.

  • September 14, 2009 at 2:12 am
    Bob says:
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    I can’t believe that GEICO prosecuted them for trying to insure a pre-existing condition! Why that’s immoral! OOPs this is P&C not health insurance – Never mind. We all know that adverse selection will not hurt a private health insuror.

  • September 14, 2009 at 6:25 am
    cmc,jr says:
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    Once again more Irish guys trying to dupe the system. Seems every time this auto fraud stuff gets publicity it’s always the
    Irish folks behind it.

  • September 14, 2009 at 6:40 am
    Bob's Wife says:
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    What the heck are you talking about? Neither one is adverse selection. In health care pre-existing doesn’t matter if you don’t have a gap in coverage.

  • September 15, 2009 at 7:56 am
    wudchuck says:
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    well, first of all, GEICO is not prosecuting. the Santa Clara County District Attorney’s Office is! if you follow fraud, you will find out that in many states they have statutes against those that file fraudlently. it costs money to start a policy and then expect to be paid out. GEICO did not have to deny the claim because they withdrew. in many cases, once a SIU (special investigation unit) has gotten the information. they will go directly to the person for a confrontation. in many cases they withdraw their claim. either way, the police are still notified. so long as we keep not paying out, we can keep the costs down. problem is that when we do pay out, it sometimes is hard to recoup the money. this is what drives the rates up!

  • September 15, 2009 at 8:05 am
    Thomas Miller says:
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    Wow – thanks for the great insights! I wouldn’t be able to make sense of any of these articles without your helpful interpretations. Keep up the great work!

  • September 15, 2009 at 11:59 am
    AnDrade says:
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    Your comments are unwarranted, distasteful, and have no statistical backing. Also, I’m such that such statistics would be able to be found if you cared to actually find some without bias. Thanks for adding so much to the dialogue!

  • September 15, 2009 at 1:11 am
    Big Mike In CALI says:
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    AnDrade, relax for a moment; obviously, CMJ, Jr. was commenting on the perceived conceit that “all fraudsters” are of ethnic decent in a humorous fashion (I thought) by saying it’s always the Irish, when apparently the parties in this case may not actually be from Ireland!

    Or would you rather he’d said something to the effect of, “…those silly Hispanic folks…?”

  • September 21, 2009 at 1:58 am
    TX Agentman says:
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    You hit the nail on the head! I rage at their ignorance when I hear someone bashing L&H because the exclude pre-existing conditions. And I use an example similer to the above one. Why would you pay money into something when you could wait until you really needed it? How long do you think the companies would stay in business? People are quick to hate on the insurance companies, until they pay out on them.



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