Usually, when we talk about insurance fraud, we mean someone making an entirely false or inflated claim.

But this case (as yet still under investigation) is different.

It is alleged by The Financial Conduct Authority that one Arthur Temlett, trading as Abacus Insurance Consultants in Scotland "may have been selling home/motor insurance and not passing premium payments on to the insurance provider."

The Authority has "placed restrictions" on Temlett to "stop him from carrying out any regulated activities, including acting as an insurance broker."

However, the Authority has not spelled out what those restrictions are. 

Aside from the obvious fraud, if such be proved, of taking the money but not delivering the service, there is the worrying consequence that, if this is proved, drivers who thought they were insured were not. That, of itself, is a criminal offence but even worse would be in the event or an accident of loss. 

It is not the first case of its kind in the UK: some years ago (reference not available) an insurance broker issued cover notes but kept the money and, if a claim was made, passed the premium to the insurance company with a copy of the cover note and a letter saying there had been an oversight.