Sunday, July 03, 2005

Insurance Fraud and the Military

No matter where you stand on the Iraq War, this report (click on title) from the GAO (Government Accounting Office) is disgraceful. Service members are now returning to combat for the third time in a single enlistment and face death daily. To protect their families, they are taking out additional life insurance policies. There are allegations that they are being sold insurance that they do not need, or will do them little good by unethical agents.

The report states that base commanders need to be responsible for reporting violations and that a searchable database should be instituted to identify unethical agents/companies. It also states that implementation of reporting procedures must be made to notify state regulators and DOD officials of fraud.

Representative Marty Meehan, Democrat-Mass recently said "It is inexcusable for the Defense Department to be so remiss in dealing with the con artists prowling our nation's military installations. Countless soldiers have been left in financial distress because life insurance scams on military bases have gone unchecked."

Here is a copy of the letter sent to Secretary of Defense Donald Rumsfield by Congressman Meehan. http://www.house.gov/apps/list/press/ma05_meehan/NR050630Rumsfeld.html

It is refreshing to see that the government is protecting those who are put in harm's way. I would like to see further disclosure (to the public) regarding the insurance companies involved so we can all send them a strong message (our business) that will hurt their bottom lines. It would also be nice to see criminal prosecution (when warranted) and possible some class action law suits to recover any of the money already lost by our service members.

3 comments:

John Hansen said...

It's a crying shame that this has been allowed to go on.

We need to get this out to educate anyone bravely serving in Iraq, or Afghanistan to save their hard earned dollars.

Many of their families are already suffering financially with their loved one's serving.

Orikinla Osinachi. said...

It is incredible that such a fraud could happen in America? And at such a time as this? And the victims are service men and women defending the present and the future of Americans in Iraq and other places?

How could these fraudulent insurance companies do this to the brave service men and women who are laying down their lives for the sake of Americans and others.

I am disappointed.
I am not an American, but a Nigerian. But, I believe that America is fighting the terrorists not only for the sake of America, but for the benefit of the whole of humanity.

The indicted insurance compaies should be made public and prosecuted as well.

master Gaurav said...

Hey... Ted. Great to see your remarks! Thanks a tonnnnnnnnn!!!

You too share some great entries on Phishing

Which company have you been associated with (in 20yrs of attempt to remove fraud)...