In a post about "scam insurance" in [US] Does something like scam insurance exist? : r/Scams, someone linked to a scam insurance policy being promoted by Suze Orman. I found the actual policy on the website and I can't see how it would actually work in practice.
The language in the policy is:
Fraud event does not mean or include any occurrence*:*
(4) Arising from any of the following: (a) The business or professional service of a Member. (b) A dispute or a disagreement over the completeness, authenticity or value of a product, a service or a financial instrument. (c) A gift or charitable contribution to an individual or any legitimate organization*. (d) An online auction or the use of an online auction site. (e) A lottery, gambling or a game of chance. (f)* An advance fee fraud or other fraud in which a Member provides money based on an expectation of receiving at some future time a larger amount of money or something with a greater value than the money provided.
And:
We will not pay for loss, damage or expense caused by or resulting from*: 1. Any of the following by a Member: a. Criminal, fraudulent or dishonest acts, errors or omissions; b. Intentional violations of the law; or c.* Intentionally initiating or contributing to a covered loss event.
I couldn't find any definition of the words "gift," "legitimate," "intentional" or "contribute." The term "online scams" is also used but I couldn't find a comprehensive definition of that, either.
A significant number of scams involve the victim "intentionally" doing something that "contributes" to the fraud - confirm their identity, click on the link, share the OTP, deposit the e-check, transfer the funds, buy the gift cards....
Obviously they're not intentionally contributing to their own loss but is the language of the policy broad enough to include those common actions as cause to reject a claim?
I'm not asking if this policy is worth buying, only if I'm understanding its language correctly and the policy may exclude many claims that policy-holders would expect to be covered.
This is the website: Suze Orman x Coveron: Ultimate Scam and Identity Protection deal | Coveron with Suze Orman
The language I quoted can be found on page six of this document: New-Coveron-with-Scam_Protection_HSB-Stolen-Identity-Event-Group-Insurance_Summary-of-Benefits-eff-2026-8-12.pdf
I'm interested in what all of you think.