Ever hear the parable about the man in the arena?

  It is not the critic who counts: not the man who points 
  out how the strong man stumbles or where the doer of deeds 
  could have done better. The credit belongs to the man who 
  is actually in the arena, whose face is marred by dust and 
  sweat and blood, who strives valiantly, who errs and comes 
  up short again and again, because there is no effort 
  without error or shortcoming, but who knows the great 
  enthusiasms, the great devotions, who spends himself for a 
  worthy cause; who, at the best, knows, in the end, the 
  triumph of high achievement, and who, at the worst, if he 
  fails, at least he fails while daring greatly, so that his 
  place shall never be with those cold and timid souls who 
  knew neither victory nor defeat.

                                       -- Teddy Roosevelt

Great to know that the potential for fraud "doesn't concern you that much". You'll post your comment and they'll still be here with the responsibility of running the company, without the ability to airily handwave away the issue.

Great to know also that you're interested in the legalities of the insurance. I guess they should have included citations to case law in a blog post.

  > it turns out that when someone tries to verify it with 
  SFPD, the suspect isn't in custody (because they've been 
  extradited to another community)?

And how exactly is that under their control?

Some people are never satisfied. You appear to be one of them.