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Abandoned Consumers: Deregulation and Fraud in the California Auto Insurance Industry

Published online by Cambridge University Press:  01 April 2003

Robert Tillman
Affiliation:
Department of Sociology, St. Johns University, New York E-mail: tillmanr@stjohns.edu

Abstract

This paper presents a case study of frauds committed by offshore companies in the California auto insurance market in the late 1980s and early 1990s. The opportunities for these crimes were created by two factors: the departure of legitimate insurance companies from the market and the adoption of deregulatory policies by state regulators. The case study illustrates some of the consequences of the increasingly common situation in the US in which consumers find themselves abandoned both by government and by legitimate providers of goods and services. The criminal consequences of this situation have also been observed in other markets.

Type
Research Article
Copyright
© 2003 Cambridge University Press

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