Is there a database that insurance companies share which prevent you from covertly being on two insurance plans at the same time and picking and choosing the best insurance plan for different needs?

Answer 1

I'm not sure that there is a database that they share, but there is a big concern that you would use both companies for a single claim, 'making money' for being sick or injured. Fraudulant claims are a major drain in the insurance industry, so they do talk! There is no database that is out there that they all look at. Frankly they would be happy to have you try to pull off what you want because they would be more than happy to accept the premium payments. The problem comes in at claim time, Insurance is an indmenity contract which means that they will put you back to the same financial place you were prior to claim. What this means for those that try to pull of some fancy stuff is that on any one claim you have you must submit to the companies and when it comes to claim time do not think that the companies do not talk behind closed doors. If you have two disability income claims both to replace your $5000 per month income they would know that there are two companies on the claim argue over who is going to cover most of it based on inception date of the policy. delay the claim payment then eventually pay you a total of $5000 based on their findings over who pays what (60% co A 40% co b etc.)