Reference no: EM133369251

Assignment:

A senior investigator in the Fraud management department of Scrutiny Insurance Co. is reviewing some of the company's handling of business relative to fraud issues, in order to inform and teach all their staff, how to implement fraud strategies pertaining to fraud prevention. Examples regarding fraud issues are brought up by the investigator, after reviewing their existing policy files, and the approaches used in conducting their business. She considers existing policies placed with the company, new applicants for insurance, suppliers utilized, and observes that there is no public education campaign.

The company sets up a video camera at one of the company's kiosks selling insurance, in a large retail store, where consumers complete applications for personal lines insurance. In one playback recording, an individual who is a collector of valuable items such as paintings, sculptures, and fine glassware items is applying for insurance.

Regarding the discussions with the applicant about the items to be insured, the investigator points out how the conversation should be conducted by Scrutiny's employees to discourage any attempt at fraud as a safety precaution.

1. What are the things the investigator would point out to the employees, about how to conduct the conversation?
2. What fraud prevention strategy should the underwriter have used when they first received the application?
3. What prohibition procedures should be considered to address these issues?
4. What advice would be given to the employees in training to handle these situations?
5. What things would be included in the campaign?