Unauthorized Insurance Committee - NAIC

1974-1, NAIC Proceedings

  • 1970, NAIC Proceedings - Non-Admitted Insurers - Report by Joseph Humphreys to Unauthorized
    Insurers (F2) Subcommittee - (p432-434)

    • Surplus Lines, Reinsurance, Jackals
    • The tight mortgage money market in the U, S. has brought a proliferation of "Non-Insurance writing insurers".
      • Such a corporation is formed to take advantage of the sophisticated builder or developer of new properties who needs mortgage money.
      • The corporate insurer name is used as "Bait" to lure the mortgage money seeker into the "Advance Fee Racket Trap", where by variations of the scheme including commissions promised to realty agents in the form of finders fees promised results
        in double-swindling of the mortgage seeker and his agent as well, occasionally a mortgage-Guaranty policy is also written which could result in a triple swindle
        also.