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Auto Fraud: Nothing’s as it seems

March 8, 2016

Farm Tractor.

The accident was reported by a friend, stating that the insured vehicle was driven by the insured’s brother when he rear-ended another farm tractor and trailer. The insured was in the vehicle and complained of a dislocated/fractured hip. Two more passengers were in the vehicle, one of whom was also injured.

Our investigation revealed several discrepancies and areas of potential material policy representation:

  • The insured had provided a different policy address than where she actually lived
  • The insured vehicle’s passengers gave one address, but were found to actually live at the insured’s residence; they were not listed on the policy
  • The brother driving the vehicle claimed to own no vehicles, but three were actually registered to him; he was also an unlisted co-owner of the insured’s vehicle
  • The policy address had several unlisted vehicles
  • The loss occurred within 30 days of policy inception

Upon an underwriting review, the policy was rescinded. Potential savings in excess of $51,000.

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