Featured Fraud: Don’t Mess With Texas

Insurer Demands Repayment from Arsonists

Two Texas residents are feeling the heat after admittedly torching their home to collect insurance, only to later renege on their joint promise to repay then-insurer, Texas Farm Bureau Underwriters.

The insurance company filed a lawsuit on Aug. 19 in Jefferson County District Court against former policyholders Brent and Corey Wise in an effort to recoup the more than $60,000 it paid on the fire-related claim in question.

According to the complaint, Texas Farm Bureau Underwriters issued a policy to Brent and Ambra Wise for their property in Beaumont, Texas. Brent Wise allegedly instructed Corey Wise to “burn down his property” on Sept. 6, 2007. Later, the insurer paid Brent Wise $2,000 for living expenses after he claimed to have no involvement in the arson. In addition, the company paid him $60,000 in policy benefits.

See related fraud: "Deliver Us from Evil"

After collecting the money, Brent and Corey Wise admitted to conspiring to set the fire, the insurance company claims in the complaint. Following that revelation, the Wises reportedly promised to repay Texas Farm Bureau Underwriters the funds distributed as a result of the arson. However, the insurer has not received a red cent and is thus filing charges of breach of contract, fraud, civil conspiracy, and unpaid debt. Additionally, it seeks actual, punitive and exemplary damages, plus attorneys’ fees, costs, pre- and post-judgment interest at the maximum rate allowed by law and any other “relief the court deems just.”

No further information is available at this time, but sparks are expected to fly in Jefferson County Court.

Comments

Resource Center

View All »

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Risk Management for Law Firms

This package of 3 concise risk management articles offers straightforward content and practical suggestions law...

Guide: Top 15 E&O Risks-And How To Avoid Them

Accidents happen. But when it's an errors and omissions oversight, that accident can open your...

We'll Show You How to Reach Your Sales Goals

Whether you work alone or have a team of agents working for you, we can...

Forensic Insider eNewsletter

Reduce litigation expenses and enhance investigative acumen with forensic news & commentary. Sign Up Now!

Advertisement. Closing in 15 seconds.