$25,430,000 Verdict Involving Insurance Fraud
General Consumer Fraud | Landmark Verdict
Published August 17, 2007 8:33 AM
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April, 1994 - This case involved a fraudulent scheme by an insurance company dealing with vanishing premium insurance policies. Plaintiffs were told if they made their payments on their life insurance policies for a certain amount of time the policies would be paid up and in force until they died and that they would not have to make any more premium payments.

Testimony showed this was a false statement and that the insurance company had made similar statements to many other policyholders. The company had actual notice that the agent was defrauding people and did nothing about it since he was one of their better agents. After the trial, the insurance company contacted every policyholder in the county and made their policy right. This was a great victory for all consumers in the area.