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September 28, 2007, Newsletter Issue #71: Fraud and Life Insurance

1

Tip of the Week

It is estimated that there is approximately $1.5 billion in fraudulent activity within the life/disability insurance sector annually. There are two types of fraud, internal and external. Internal fraud is from within the industry and external fraud comes from policy holders, third party claimants and applicants. Insurance fraud is a penalty punishable by prison time and substantial financial penalties. Life insurance fraud raises the rates of coverage for the insured, which can make affordable life insurance not-so affordable for the honest policy holder.



2

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