Yes but insurance companies aren’t always dishonest or negatively valued.
I’ve tended to have quite good experiences with mine. They can definitely can be underhanded on some things, but so can their customers, and there are going to be times where they have high claim volume with low liquidity that are going to force decisions to be made that aren’t necessarily desirable for anyone.
The frauds running this scheme, on the other hand…
I have experience with this because after hurricane Sandy I was raising houses in NJ and spoke to the people there
I believe residents received 1000 per household and had to wait for anything more. {At least that's what I recall}
The rest was tied up in federal vs State red tape and insurance companies.
So this small amount is pretty standardly abysmal.
A big key of that money is it must be previously earmarked on the state level for this exact natural disaster.
If it's earmarked for tornado damage, a hurricane will take more time to receive funds. Yes, this is how dumb it is.
Which is all to say THEY DON'T WANT TO SPEND THE MONEY.
So basically, they’re an insurance company, with no contract to their customers, and less recourse for violation of expectations/terms.
They are a criminal organization intent on stealing your money.
So yes, an insurance company.
Yes but insurance companies aren’t always dishonest or negatively valued.
I’ve tended to have quite good experiences with mine. They can definitely can be underhanded on some things, but so can their customers, and there are going to be times where they have high claim volume with low liquidity that are going to force decisions to be made that aren’t necessarily desirable for anyone.
The frauds running this scheme, on the other hand…
I'd say insurance companies are one of the tools pulled out of the shed when they're needed.
But overall I find the entire premise of insurance little more than a money laundering scheme, or even extortion.