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Man sells bunk insurance policies, gets caught

While the following story didn't occur here in Minneapolis, Minnesota, it represents a tragic bad faith case and demonstrates why people need to be very cautious and perform their due diligence when pursuing certain insurance contracts.

An insurance agent was arrested recently in Florida after he sold fraudulent workers' compensation policies to an elderly business owner and an American Legion Post. In the case of the elderly business owner, the 91-year-old thought he had a valid workers' comp plan to protect his employees. Until one of those workers was injured on the job and the 91-year-old was left liable for $30,000 in medical bills and lost wages.

It was discovered that the man propagating the fraudulent workers' comp claims didn't have a license to sell insurance, after he was denied the ability to attain a license due to his criminal background. The victims in this case paid insurance premiums to the man for many months before he was eventually caught.

This is an unfortunate side to the bad faith insurance world: fraudulent or downright criminal acts by people who are trying to deceive or manipulate people (often vulnerable people at that).

Victims of these cases are put in a very tough position, and they may think that there is no way for them to get out of it. We assure you, there are options at your disposal. You have legal recourse to hold the irresponsible people who performed these criminal acts accountable for what they have done.

Source: workerscompensation.com, "Georgia Insurance Agent Arrested for Stealing WC Premiums in Florida," Feb. 22, 2016

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