Insurance, a fraud?

“Columbia, S.C. – July 15, 2009 – Sherry Arrington, 37, 121 Grafton Lane in Lexington, pled guilty Tuesday in Richland County General Sessions Court to Presenting False Claims for Payment of more than $1,000 but less than $5,000 and Forgery of less than $5,000, both punishable by up to five years and/or a fine. The original charges were Presenting False Claims for Payment for $5,000 or more, punishable by up to 10 years or a fine and Forgery of more than $5,000.

Judge Alison Renee Lee sentenced Arrington to 30 months suspended to five years probation and ordered her to pay $11,850 in restitution to Colonial Life and Accident Insurance Company.

On or about August 8, 2007, Arrington presented an insurance claim to her insurance company and employer, Colonial Life and Accident Insurance Company. The claim alleged injuries, treatment, and hospitalization of her son at a hospital in Virginia and Ms. Arrington presented documentation, allegedly from the hospital, to support the claim. Colonial Life and Accident Insurance Company paid $4,350 for the claim. Several anomalies in the paperwork led Colonial Life to confront her about the validity of the claim. When confronted, Arrington admitted the claim was fraudulent and she had created the false documentation. She also admitted several other claims she made were fraudulent and included false documentation. Payment for the fraudulent claims totaled $11,850. Arrington consented to pay that amount in restitution.”
Quoted from:

My question is this; Do you think this person is a bad woman for doing what she did? She used her son in order to get money from her insurance company that she was not allowed legally. She did something against the law by taking money from them without presenting an actual claim. Doesn’t this sound familiar? This is what we do every time we pay the insurance companies and they go broke on us. We give them our money, and they don’t take care of us. We trust them to be truthful and do the right thing, but they look for loopholes and give you the least amount of money possible.
Don’t get me wrong, she should not have taken matters into her own hands, but is she really all that bad?  Every day millions of people get ripped off. Whether at a department store, a roadside vendor, or an insurance company it still doesn’t rub me the right way. I agree that what she did was wrong, but I just want to point out that what we are punishing her for, we let them get away with every day.
What you need is an insurance company that you can trust. Preferably a smaller, more personal company like this. Something big, like say AIG for example,  has more potential to ‘screw the little guy’ in the long run.


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