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The Weird and Wonderful World of Insurance

What are some weird and wonderful insurance stories from America?

The Weird and Wonderful World of Insurance

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We came across this amusing (but true) insurance story with an interesting twist. Only in America!
A lawyer in Charlotte, NC purchased a box of very rare and expensive cigars, then insured them against fire among other things.
Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed a claim with the insurance company.
In his claim, the lawyer stated the cigars were lost "in a series of small fires."
The insurance company refused to pay, citing the obvious reason: that the man had consumed the cigars in the normal fashion.
The lawyer sued....and won! In delivering the ruling the judge agreed with the insurance company that the claim was frivolous.
The judge stated nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be "unacceptable fire," and was obligated to pay the claim.
Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000.00 to the lawyer for his loss of the rare cigars lost in the "fires."
But, after the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON!
With his own insurance claim and testimony from the previous case used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000.00 fine.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori


Farm Insurance Articles

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What Australian Farmers Should Know About Crop Insurance
What Australian Farmers Should Know About Crop Insurance
Crop insurance is a type of insurance policy designed to protect farmers from the financial losses that arise from damages to their crops. This could be due to various risks, including adverse weather conditions, pests, and diseases. - read more
Risk Management and Insurance Options for Farmers
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Risk management is the practice of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. In farming, risk management involves various strategies to protect the financial health and operational stability of the farm. - read more
Farm Liability Insurance Costs vs. Benefits: Is It Worth It?
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Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - read more
Investing in Your Farm's Legacy: Estate Planning and Farm Insurance Combined
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Farming is much more than an occupation; it's a way of life and a heritage that often spans generations. In today's ever-evolving agricultural landscape, embracing modern practices while preserving your farm's future has never been more crucial. Estate planning emerges as a pivotal strategy for safeguarding your agricultural legacy, ensuring that your hard-earned investments and the land you hold dear are passed on according to your wishes. - read more
How to Protect Your Harvest: Tips for Choosing the Right Crop Insurance
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Farming, at its core, is an enterprise fraught with uncertainty. Weather calamities, pests, diseases, and fluctuating market conditions can all impact the output and quality of produce. This is where crop insurance proves its worth, serving as a safety net for farmers against the myriad risks they face each season. - read more
Understanding Farm Equipment Insurance: A Breakdown for Australian Farmers
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In the dynamic world of Australian agriculture, farm equipment plays a crucial role in the day-to-day operations of farms. From tractors to harvesters, having the right machinery means managing your farm more efficiently. However, the high value of this equipment makes it essential to protect it adequately through insurance. - read more
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Protecting Your Herd: The Aussie Farmer's Guide to Livestock Insurance
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For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
Agroforestry Insurance Guide: Protecting Your Investment in Australia's Sustainable Future
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Insurance News

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Rising Mental Health Claims Impact Australian Life Insurance Industry
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26 Dec 2025: Paige Estritori
The Australian life insurance industry is witnessing a significant surge in mental health-related claims, reflecting broader societal challenges and increasing awareness of mental health issues. AIA Australia, a leading life insurer, has reported that mental health claims now account for 23% of its total claims, up from 15% in 2014. This trend underscores the growing prevalence of mental health conditions and their impact on individuals' ability to work and maintain financial stability. - read more
Decline in Australian Life and Income Protection Insurance Premiums
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26 Dec 2025: Paige Estritori
Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more
Club Marine Marks 65 Years of Leadership in Australian Boating Insurance
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26 Dec 2025: Paige Estritori
Club Marine, Australia's largest recreational boat insurer, is celebrating its 65th anniversary in 2024. Since its founding in 1959 as Marine Hull & Liability, the company has grown from a small operation in Victoria to a nationwide provider of insurance services for the country's boating community. - read more
IAG's Strategic Moves Propel Profit Forecast Upward
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26 Dec 2025: Paige Estritori
Insurance Australia Group (IAG) has recently announced an optimistic upgrade to its financial guidance for the fiscal year 2026, projecting a 10% increase in gross written premium (GWP) and an insurance profit ranging between $1.55 billion and $1.75 billion. This positive outlook is largely attributed to strategic acquisitions and a focus on digital transformation. - read more
Australian Insurers Face Challenges in Emerging Risk Preparedness
Australian Insurers Face Challenges in Emerging Risk Preparedness
26 Dec 2025: Paige Estritori
Recent findings from PwC's Insurance Banana Skins Survey indicate that Australian insurers are trailing behind their global counterparts in terms of preparedness for emerging risks, particularly in areas such as cyber threats and artificial intelligence (AI). - read more
Australian Insurers Falling Behind in Cyber Risk Preparedness
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26 Dec 2025: Paige Estritori
Recent findings from the PwC Insurance Banana Skins Survey reveal that Australian insurers are trailing their global counterparts in preparedness for emerging risks, particularly in the realms of cyber threats and artificial intelligence (AI). This lag poses significant challenges as the industry confronts an increasingly complex risk landscape. - read more
Australian General Insurers Report Decade-High Return on Equity
Australian General Insurers Report Decade-High Return on Equity
26 Dec 2025: Paige Estritori
Australia's general insurance industry has reported a remarkable 19% return on equity (ROE) for the financial year 2025 (FY25), marking the highest level in a decade. This significant achievement is detailed in the latest Optima Report by actuarial consultancy Finity, which attributes the strong performance to a combination of favorable factors. - read more
Australian Life Insurance Market Set for Steady Growth
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26 Dec 2025: Paige Estritori
Australia's life insurance sector is on track for moderate expansion over the next four years, with gross written premiums (GWP) forecasted to increase from $26.2 billion in 2025 to $30.5 billion by 2029. This represents a compound annual growth rate (CAGR) of 3.9%, according to recent analysis by GlobalData. - read more
Surge in Mental Health Claims Challenges Australia's Income Protection Insurance
Surge in Mental Health Claims Challenges Australia's Income Protection Insurance
25 Dec 2025: Paige Estritori
Recent data from the Council of Australian Life Insurers (CALI) reveals a significant shift in the landscape of income protection insurance in Australia. Mental health conditions have emerged as the leading cause of total and permanent disability (TPD) claims, accounting for nearly one-third of all claims paid. In 2024 alone, insurers disbursed over $2.2 billion for retail mental health claims, a figure that has almost doubled compared to five years prior. - read more

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Knowledgebase
Disability Insurance:
A type of insurance protection that pays a portion of a person's income lost due to a total or partial disablement arising from either an accident or a sickness.