There’s a real problem with the increasing level of fraud. When you add up the estimates for each state it comes to so many billions, it brings tears to the eyes. Who would have thought we had become so dishonest as a nation. If only we could bring the same level of commitment to reducing the deficit, the Tea Party could retire feeling there was a job well done. As it is, some states have become fraud magnets. The majority of these unlucky states run a no-fault system.
Put simply, a system designed to enable people to recover their losses with fewer administrative and legal problems is ripe for the plucking. It’s somewhat ironic to applaud the role of attorneys but, in this instance, their job is demand satisfactory evidence to support a claim. If the claimant has no good evidence, the claim is dismissed. In no-fault states, the insurance companies have no incentive to challenge every claimant to produce credible evidence. There’s an administrative routine and so long as the paperwork matches the requirements, payment is authorized. The result, of course, is scam artists queuing up for payment and all the bills being passed on to the policyholders. Yes, that’s right. We all get to pay higher premium rates to cover the cost of the fraud while the insurance companies continue to be highly profitable.
