Life insurance is designed to protect families against the unexpected death of a family member on whom the family relies for its livelihood.
When the AIDS epidemic first struck, young men found they had a short life expectancy. They sold their life insurance policies to obtain cash and allow the purchasers to make money by paying the premiums for only a short period of time because the AIDS victims died quickly. Unfortunately, in the legitimate sale of life policies to provide cash to AIDS victims to pay for their last days on earth criminals saw the purchase of life policies of people who were sure to die quickly as a temptation to defraud insurers for fun and profit.
In U.S. v. Binday, a group of insurance brokers were convicted in the U.S. District Court for the Southern District of New York of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud, and conspiracy to obstruct justice through destruction of records. They appealed, and the U.S. Court of Appeals for the Second Circuit upheld their convictions.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
