Posted On: August 20, 2007, 5:33 pm CDT

Posted By: Ahab

One tenth of one percent of fraud is ever even considered by insurance companies in this country because the penalties paid in libel and slander suits is just too dear. A carrier has to actually catch people in the act in order to make such a case. I've defended cases where the arsonist was sitting in prison for two years before the insurance company could get the libel/slander lawsuit he brought against them before his actual conviction for the arson dismissed. The legal fees generated by the process were huge, but in the end the arsonist is still in prison and the insurance company is still in business. The insured was actually arrested during the course of his deposition. No wonder insurance companies are reluctant to pursue these scumbags.