Insurance Companies Are Subjecting Vulnerable Seniors to Insurance Scams
Seniors are often the unwitting victims of frauds and scams by unscrupulous individuals. In the American Association for Justice's recent report entitled "Standing Up for Seniors: How the Civil Justice System Protects Elderly Americans," it appears that seniors are often the victims of nursing home neglect and of frauds perpetrated by large insurance companies as well.
During the 1980s and 1990s Interstate Service Insurance Agency signed up thousands of seniors for long-term care policies with promises of low premiums that would stay fixed. Despite their promises, the insurance company increased the "policy rate" which had the effect of raising premiums for everyone. Because of this scam, seniors saw their premiums increase by as much as 800 percent!
Unfortunately, there are many other such scams that were and are being perpetrated against seniors. In the 1990s, National Heritage Life Insurance Company defrauded elderly policyholders of $450 million. Prudential, one of the largest insurance companies in the country, scammed millions of seniors by tricking customers with existing life insurance policies into buying new policies that were more expensive and offered no additional benefits.
United American agents, masquerading as representatives of federal agencies, pressured hundreds of seniors into buying insurance that cost more and provided less than the insurance they already had. In 2003, United American settled charges that it had defrauded senior citizens in the sale of Medicare policies.
Regulators have had a hard time handling these massive insurance industry scams. The civil justice system has taken up the slack. In the case of Interstate's scam, due to regulatory loopholes, regulators were unable to act. Attorneys hired by the victims however were able to obtain more than $12 million for more than 13,000 seniors who got the premiums rolled back and ensured future increases were banned.
Because of this and other litigation brought by insurance lawyers for some nursing home abuse victims, insurance companies like Prudential, John Hancock, Met Life, and New York Life have all been forced to compensate policyholders for scams like the ones described above.
If you suspect that you or someone you love has been the victim of an insurance scam, there is hope. Consult with an elder abuse lawyer, so you can determine the strength of your case and what you may be entitled to. Call Bisnar Chase Personal Injury Attorneys expert elder abuse attorneys, at 800-849-4905. The call is free. The advice may be priceless.
Call the personal injury lawyers in Los Angeles for a free professional evaluation of your rights by attorneys who have been representing victims of medical malpractice and senior abuse since 1978. You will experience award winning representation and outstanding personal service by a compassionate and understanding law firm in a comfortable environment.