INSURANCE

Insurance Scams Costly: Actions by unregulated foreign reinsurers are causing major financial losses for customers of U.S. insurance companies and threaten more harm to American industry, Senate investigators said. A Senate subcommittee heard testimony that scams by foreign firms may result in losses of $100 million in California alone. In the last six months, state regulators have taken control of four big life insurance firms because nervous customers were cashing in their policies, which threatened to create ripples throughout the industry.