Posted On: June 20, 2005, 4:30 pm CDT

Posted By: Shelley Gage

I agree, insurance fraud is running rampant in the aftermath of this catastrophe. I just think it is important to mention that the fraud doesn't end there. Numerous claims are being denied by the companies or on the companies behalf in bad faith. There are many claims still unresolved with homeowners nearly a year after these storms. One of the primary reasons these claims remain unresolved is that these companies want to hold on to their money as long as possible and pay as little as possible for the resolution. Unfair claims settlement practices is a growing problem. Claimants are being victimized by their own ignorance of insurance law. Complaints are being filed with the Department of Insurance constantly citing the treatment they have received after having filed a claim. Purchasing a replacement cost policy only to be told during the couse of settlement "no, not really" Insurance fraud isn't only a crime committed by those outside of our industry it is also a crime committed by the leaders in our industry. Former Oklohoma Insurance commissioner Fisher is facing up to 51 years in prison for his exploitation of his position. There is no basic trust that when you purchase insurance and you have a claim your company will pay you in a timely fashion without investigation or scrutinazation. Without that basic trust that our insured's will only submit valid claims and upon submission the company will pay that claim without further question, insurance fraud will continue to spur out of control like a raging wild fire. There is no trust.