Insurance Fraud

Insurance Fraud

Insurance Fraud and the Insurable interest doctrine

The deadly insurance fraud that drives Double Indemnity resonates through English and American insurance law. The British Parliament passed the Life Assurance Act of 1774 to prevent the use of life insurance for nefarious purposes. The act proclaimed, “Whereas it hath been found by experience that the making of insurance on lives … wherein the insured shall have no interest hath introduced a mischievous kind of gaming[,] no insurance shall be made … on the life … of any person … wherein the person … for whose … benefit … such policy shall be made shall have no interest.”

The insurable interest doctrine was originally intended to discourage the murder of the insured. But when the doctrine was incorporated into mid-20th-century insurance statutes, “[n]obody writing the laws anticipated you would just go out and sell your policy,” says Stephan R. Leimberg, an expert on life settlements and publisher of Leimberg Information Services Inc. in Amelia Island, Florida. “There was no life settlement community, there was no secondary market.”

Spanish Translation of insurance fraud

This is the legal translation of English to Spanish in relation to insurance fraud and / or a definition of this topic: Fraude en el Seguro (in Spanish, without translation of the dictionary entry).



, ,