Nebraska Department of Insurance

NEBRASKA DEPARTMENT OF INSURANCE INSURANCE FRAUD PREVENTION DIVISION 941 O Street, Suite 400 Lincoln, NE 68508-3639

Life Insurance Fraud Hints

It is important to remember that the hints listed below are merely possible "red flags" that there may be some evidence consistent with an insurance fraud scheme.  Any one or two of these by themselves, may not raise your suspicion; however, when you have several of these hints present or a pattern begins to emerge, you should investigate further or forward your suspicion to the Insurance Fraud Prevention Division.

1. The policy's effective date is close to the date of death.
2. The deceased is not well known by relatives and lived alone.
3. Policies tend to be for small coverage which are many times available in mass offerings, i.e., in magazines, mail-in and television advertisements.
4. The agent's "loss ratios" appear unusually skewed, considering the size of the market and the types of people insured.
5. Policies requiring physical examinations are almost never used in these schemes.
6. Numerous life insurance policies were purchased on the victim.
7. Different carriers were used in securing coverage for no apparent reason.
8. The coverage amount is not commensurate with the social position of the deceased; e.g., a loss income clerical worker has a life insurance estate of millions.
9. An unusually large number of death certificates were obtained by the beneficiary.