6. Phantom Policies
Sometimes the policyholder is the victim of insurance fraud by the likes of James Lee Graff, who, according to BankRate, robbed some 30,000 people of more than $40 million in stolen health insurance premiums, leaving them to pay medical bills from their own pockets. The client pays the agent the premium, expecting the agent to forward it on to the company. But instead, the agent pockets the money and issues a fake policy that looks real. The client is left uncovered.
7. Arsonists Getting Greedy
Nicholas Di Puma of Walton, N.Y., torched his home and his convertible to collect on his homeowners and auto insurance. According to Bankrate, Di Puma said it all started when pans on his stove ignited. After trying to extinguish the inferno with a rag, Di Puma said he threw the first pan out the door, where it landed in the backseat of his convertible. While en route to tossing the second pan outside, he tripped and the pan landed on his couch. Unbelievable? That's what local law enforcement thought. He received five years of probation -- and no insurance benefits.
8. The Fake Slip-and-Fall Routine
One of the most notorious scammers, Isabel Parker, has prostrated herself in department stores, supermarkets and liquor stores 49 times for claims totaling $500,000 during her lifetime, according to Insurance Providers.