Avoid fraud in insurance.

avoid fraud in insurance. 

caution against this, admin GEICO had heard from relatives that nearly admin experience in insurance fraud from reputable insurance companies, and it turns out the name of an insurance that does not necessarily guarantee that the insurance is assured. is that correct? 

Prudential plc is a UK company engaged in financial services. Prudential has a ± 20 million customers around the world. In addition to the UK, Prudential also operates in 12 countries in Asia and has Jackson National Life in America. Prudential left the general insurance business in 2002 and Churchill Insurance license in order to use his name.

Prudential plc was first established in 1848 in Hatton Garden, London under the name Prudential Mutual Assurance Investment and Loan Association. Prudential started its business by providing loans to the professionals through life insurance. Prudential building strength insurance business by establishing a direct sales unit (agents) whose job it is to visit clients to discuss the needs of their clients and sell life insurance. "Forces" is then for many years known as the "Man from the Pru". This policy proved effective and became the basis of Prudential's growth into one of the largest insurance companies in the world.

But in the early 1980's until the mid 1990's, the insurance agents who worked for Prudential Life Insurance using tactics that are unethical in selling insurance policies from Prudential Life Insurance. The tactics used by the agent is telling clients that had an insurance policy from Prudential that they may purchase additional life insurance at a very low price or by not paying any money. The agent also said that they (insurance clients) only need to pay a premium from the policyholder for a specified period. After that, the client

will still hold the policy without additional dime. In general cases, the procedures above is not true. Other malpractices committed by agents Prudential is to sell life insurance policies in the form of investment disamarakan.

Malpractice activities conducted by prudential agents are named as the "churning". Activity "Churning" means selling insurance policies to consumers that are not needed by consumers only to generate higher commission agent for Prudential. One of the activities carried out in the "churning" an insurance policy is to convince the consumer / existing clients that they can get an additional policy costs a very light or free. This process can be implemented by giving the client a new insurance policy and pay the premiums of the insurance policy cash values ​​and the value of dividends that accrued to existing insurance policy. This process will reduce the cash value of the existing policy, which resulted in an insurance policy does not provide significant benefits. In some cases, this process will make the existing policy is not worth having. When the policy is worthless, then no additional funds available to pay for the new policy, so that the new policy would be lost. In the end, this process resulted in policyholders have little or no money at all to be left to their heirs.

The agent prudential policy of routine activity "churning" of insurance policies as a way to increase the amount of commission they get. The agent will give you a new policy, new poleis pay with funds from the old policy, as well as take advantage of commission

provide a new insurance policy. The agent also received a bonus from the insurance company in this case Prudential based on the amount of insurance they sell. Therefore, a growing number of "churning" the more the bonus received by the agent of the insurance company.

In general, when funds are withdrawn from an existing life insurance policy in the form of cash or used for other activities, customer / client must sign a declaration stating the authority of the use of funds from the value of the insurance policy. In the Prudential case, the agent hid the affidavit as one of general document. Consumers / clients are not thoroughly informed about the documents they signed. Consumer / client "reassured" by the agent that the statement of authority use insurance funds to finance the new policy as an ordinary routine document that must be signed. On the other hand there is also a prudential agent who convinced his clients to sign blank documents, which will then be charged for taking money from existing policy.

Deception activities such as the above is just one of the activities performed by the agent malpractice prudential. The agent also told the client that they (clients) need only pay the policyholder asurnasi within a few years. The problem that arises is part of Prudential constantly collect insurance premiums to clients after their term policy runs out. Some of the clients who refuse to pay additional premiums, the money is taken from the value of the insurance policy. This will lower the value and benefits of the insurance policy that will be given to the beneficiary when the policyholder dies.

These clients were not informed that there is a policy that allows payment of premiums for a period of several years based on the value of the interest rate earned by the insurance policy. If the interest rate falls, the money received will not be enough to pay the existing premium. In this case, the policyholder is required to pay the difference or pay policyholder risk to lose its value. This will cause the client does not have insurance anymore. Seoerti policies should be communicated clearly to consumers. The consumer can not easily to not informed that no payment is required after a certain period of time. Consumers should be told what the factors associated with not having an additional premium.

Consumers know that they have been deceived after they received notice that they will run out of the existing policy, or behutang funds from existing policies that are used to pay the premium of the new policy. So far they are only informed by the agent, that these things do not need to worry or not a significant problem. During this time, they were told by the agent that the insurance policy they are going well.

Activity last malpractice committed by Prudential agent is selling a life insurance policy disguised as a form of investment. For example, the agent will tell you that they sell an investment to ease the burden of insurance for children of the client. The problem is what is referred to as an investment by the agent is nothing but a life insurance policy that generates cash value. Malpractice arises because consumers do not understand that

they not only generate cash value, but they also pay life insurance policy funds. Life insurance is not required by the consumer. Funds used to purchase an insurance policy is not a cash value, which means that consumers lose all their funds. "Investment" is not any good.

In the mid-1990s, investigators attempted to obtain funds from consumers Prudential missing. Investigators get a lot of deception by the agent to carry out the "churning" an insurance policy for their own benefit. In every state of America was carried out investigation on these cases. In the end, Prudential was fined 50 million dollars by some agencies insurance investigator. In addition, Prudential was also fined $ 20 million by the National Association of Securities Dealers.

The insurance company is also implementing "a class-action lawsuit" based on all of the funds that purchased life insurance between 1982 to 1995 which covers nearly 10.7 million insurance policy. Prudential also paid cash of 2.8 billion dollars for policyholders. This is in addition to fines imposed by the legal bodies.

But the reality is not as easy as it is expected to get a monetary compensation to victims of malpractice. There are many reports that clients are required to fill out a document explaining how they lost money because of the practice of the Prudential agent. There are also reports that many consumers who complain about the amount of compensation they get, which in some cases they just deiberikan compensation fund

no more than 100 dollars. There are also consumers who are tired of the necessary procedures or make complaints that they think will not mean much, so they accept whatever compensation is offered.

Worse, during the process of kompenasi was marked by numerous activities that deviate from the law. Some employees were told to speed up the process of prudential claims rather than using the correct procedures. There are also reports that indicate a contest to see who can make the process of insurance claims is the fastest. The employees reported that they were bullied because of their reporting activities.

At this time, there are no legal proceedings against Prudential were canceled or delayed on the practice of life insurance deception. Prudential also has mengumumpkan replacement of their sales managers. Manager now not only paid a commission only sales. They also assessed / paid based on the number of existing clients who successfully defend them, the quality of the people they employ sebgai agent, as well as in maintaining the cash value of the insurance policy consumers