For an example of how auto insurance is not supposed to work, please refer to a story printed by the Sacramento Business Journal. Two Northern California residents associated with the sovereign citizen’s movement were convicted by federal investigators of operating a fraudulent insurance scheme along with other charges.
The pair operated a bogus insurance company that did not comply with California or United States insurance laws. To make matters worse, the pair paid out insurance claims based on their interpretation of social and religious values. For example, the fraudulent insurance company refused to pay for pain and suffering caused by injury car accidents because pain and suffering were part of a divine plan.
