Life Insurance - Criticism

Criticism

This section needs additional citations for verification.

Although some aspects of the application process (such as underwriting and insurable interest provisions) make it difficult, life insurance policies have been used to facilitate exploitation and fraud. In the case of life insurance, there is a possible motive to purchase a life insurance policy, particularly if the face value is substantial, and then murder the insured. Usually, the larger the claim, and the more serious the incident, the larger and more intense the ensuing investigation, consisting of police and insurer investigators.

The television series Forensic Files has included episodes that feature this scenario. There was also a documented case in 2006, where two elderly women were accused of taking in homeless men and assisting them. As part of their assistance, they took out life insurance for the men. After the contestability period ended on the policies, the women are alleged to have had the men killed via hit-and-run car crashes.

Recently, viatical settlements have created problems for life insurance providers. A viatical settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy holder. The policy holder sells the policy (including the right to name the beneficiary) to a purchaser for a price discounted from the policy value. The seller has cash in hand, and the purchaser will realize a profit when the seller dies and the proceeds are delivered to the purchaser. In the meantime, the purchaser continues to pay the premiums. Although both parties have reached an agreeable settlement, insurers are troubled by this trend. Insurers calculate their rates with the assumption that a certain portion of policy holders will seek to redeem the cash value of their insurance policies before death. They also expect that a certain portion will stop paying premiums and forfeit their policies. However, viatical settlements ensure that such policies will with absolute certainty be paid out. Some purchasers, in order to take advantage of the potentially large profits, have even actively sought to collude with uninsured elderly and terminally ill patients, and created policies that would have not otherwise been purchased. These policies are guaranteed losses from the insurers' perspective.

Read more about this topic:  Life Insurance

Other articles related to "criticism":

Yoot Tower - Criticism
... The game was dismissed by some game review websites and magazines as being too much a rehash of the original SimTower ... Many wrote the game off as being basically identical to its predecessor ...
Yuri Knorozov - Critical Reactions To His Work
... hardly known scholar, Knorozov and his thesis came under some severe and at times dismissive criticism ... Knorozov persisted with his publications in spite of the criticism and rejection of many Mayanists of the time ... since his position and standing at the institute was not adversely influenced by criticism from Western academics ...
Joseph Justus Scaliger - Academic Output
... of his life that he composed and published his books of historical criticism ... He was the first to lay down and apply sound rules of criticism and emendation, and to change textual criticism from a series of haphazard guesses into a "rational procedure subject to ... Instead, they valued his emendatory criticism and his skill in Greek ...
TSR, Inc. - Criticism
... The company was the subject of an urban myth stating that it tried to trademark the term "Nazi" ... This was based on a supplement for the Indiana Jones RPG, in which some figures were marked with "NaziTM" ...
Psychoanalytic Literary Criticism - Overview
... The object of psychoanalytic literary criticism, at its very simplest, can be the psychoanalysis of the author or of a particularly interesting character in a given work ... In this directly therapeutic form, the criticism is very similar to psychoanalysis itself, closely following the analytic interpretive process discussed in Freud ... However, more complex variations of psychoanalytic criticism are possible ...

Famous quotes containing the word criticism:

    As far as criticism is concerned, we don’t resent that unless it is absolutely biased, as it is in most cases.
    John Vorster (1915–1983)

    Homoeopathy is insignificant as an art of healing, but of great value as criticism on the hygeia or medical practice of the time.
    Ralph Waldo Emerson (1803–1882)

    A bad short story or novel or poem leaves one comparatively calm because it does not exist, unless it gets a fake prestige through being mistaken for good work. It is essentially negative, it is something that has not come through. But over bad criticism one has a sense of real calamity.
    Rebecca West (1892–1983)