“In over seven years as Georgia’s Insurance Commissioner, I’ve seen this type of fraud many times,”
And you will continue to see it until you start giving out penalties that involve more than a slap on the wrist and probation.
Correct, Jack. I don’t know what motivates people to believe they can get away with stuff like this. They obviously have no sense of right and wrong and ethics training did them no good. Maybe gambling debts, maybe drug use or a sense of entitlement causes strange behavior.
I agree 100% and let’s not exclude greed and deception as it says for personal gain. It is more than likely that of creating a certain lifestyle for things that they cannot afford.
The motivation can also be greed and living beyond ones mean to impress others. I agree with Jack that until tougher penalties are given out insurance fraud will continue to infiltrate our country.
Perhaps this guy created a fake license to do business. Easy to get online and he could hang it on the wall and unsuspecting customers would think he is legit.
Experience shows that inadequate premium accounting can easily hide fraud. A premium trust accounting is now available to control not only transacted premiums but also trust deposits and disbursements. Absent such control everything is possible. Many retailers are still oblivious of the trust account process; this may explain the mismanagement of the agency’s trust funds. May be insurance departments should require agency owners to provide online statements of their agency’s trust financial solvency, possibly at the license renewal time. I am sure agencies will then pay more attention to the management of premium funds. Insurance Department auditors will also have a much easier job.
“In over seven years as Georgia’s Insurance Commissioner, I’ve seen this type of fraud many times,”
And you will continue to see it until you start giving out penalties that involve more than a slap on the wrist and probation.
Correct, Jack. I don’t know what motivates people to believe they can get away with stuff like this. They obviously have no sense of right and wrong and ethics training did them no good. Maybe gambling debts, maybe drug use or a sense of entitlement causes strange behavior.
I agree 100% and let’s not exclude greed and deception as it says for personal gain. It is more than likely that of creating a certain lifestyle for things that they cannot afford.
The motivation can also be greed and living beyond ones mean to impress others. I agree with Jack that until tougher penalties are given out insurance fraud will continue to infiltrate our country.
Perhaps this guy created a fake license to do business. Easy to get online and he could hang it on the wall and unsuspecting customers would think he is legit.
Experience shows that inadequate premium accounting can easily hide fraud. A premium trust accounting is now available to control not only transacted premiums but also trust deposits and disbursements. Absent such control everything is possible. Many retailers are still oblivious of the trust account process; this may explain the mismanagement of the agency’s trust funds. May be insurance departments should require agency owners to provide online statements of their agency’s trust financial solvency, possibly at the license renewal time. I am sure agencies will then pay more attention to the management of premium funds. Insurance Department auditors will also have a much easier job.