The Conduct of Health Insurance Policy Fraud in the Rainmaker Assignment

The Conduct of Health Insurance Policy Fraud in the Rainmaker - Assignment Example Great Benefit insurance company has wilfully committed fraud when it continued to accept premiums and new policyholders when it knows for a fact that it is in a precarious financial condition to settle obligations due to its huge debt. I would like to give Great Benefit insurance company the benefit of the doubt that when it incorporated the company, it did not intend to wrong its policyholders but meant to fulfill its obligation. In the novel or movie, the insurance company may have been caused to commit fraud to preserve itself as a business entity because it is already hemorrhaging financially due to heavy debts. They may have employed the initial policy of denying all claims regardless of its legitimacy as a coping mechanism of their dire financial status. So the first measure that I will institute is for the insurance company to avoid the circumstance that will cause them to commit fraud in the future. I will fix their financial position by devising a policy that will make the company liquid at all times to settle all the claims of its policyholders in the future. Just like in the banks, I will require the insurance to have a liquidity that is commensurate to a certain number of policyholders that should a significant number of them will file a legitimate claim against their policies, the insurance company will be in a financial position to fulfill its obligation. Equally important is the institution of a policy of limiting the acceptance of new policyholders in accordance with its financial capacity and liquidity. For the time being, I will recommend that Great Benefits insurance company not to accept new policyholder until it has restructured its financial position.