It may be hard to believe, but insurance companies that serve volunteer workers also lose money due to insurance fraud.
Often people ask me if they should reveal all of their medical problems when they fill out an application. Some feel that since they had a major medical problem some time ago and it is not bothering them now, they need not list it. Yet such misstatements can cost an insurance company thousands of dollars. And remember, whenever an insurance company pays an “undeserved claim,” someone pays for it. Who? The healthy people on the insurance plan pay. Unmerited claims always cause insurance rates to increase.
We had one experience where a senior worker failed to explain a certain pre-existing medical condition. If she had been honest, the company would have declined her insurance. Due to her pre-existing condition she ended up having major surgery. Before the insurance company discovered she had lied on her application, they had paid her claims of over $100,000.
In another group insurance plan, a worker in the USA falsely claimed membership of a volunteer organization. Her insurance claims of $80,000 were paid before the insurance company realized she was not a volunteer worker in the organization.
It is very difficult to win the confidence of secular people in these companies when volunteer people are dishonest in insurance matters. The good news is that almost all volunteer workers are scrupulous in telling the truth when completing a health application!
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