Life insurers are most often guilty of insurance fraud in the form of their agents doing “churning”. This is where the agent seeks to cancel your existing life insurance policy and replace it with a new policy that is paid for by the “juice”, or cash value, in your existing policy. Agents do this to earn more commissions for themselves without having to seek new prospects for business.
Churning can result in increased premiums for a customer and clearly costs them out of their cash value.Another insurance fraud practiced by agents, however, is called “windowing”.
This is where, being unable to attain a client’s or applicant’s signature on a necessary document but already having that signature elsewhere, the agent holds up a signed document behind the unsigned document,
presses it against a window to make the light shine through, and traces over the signature with a pen in order to forge the signature of the client or applicant.
