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The Man Who Wouldn’t Die – The Bizarre Depression Era Crime That Shaped How Our Insurance Works

Khalid Elhassan June 2, 2025 17 min

A young Michael Malloy, left, and his killers. I09

11. Third Party Verification and Insistence on an Insurable Interest

Insurable interest verification became more rigorous after the Malloy case. Slideplayer

Another key reform was the introduction of third-party verification checks. Insurance companies began to cross-reference applications with public records, and use external databases to confirm the applicant’s identity, age, address, and occupation.

That includes checking for criminal backgrounds or prior fraudulent activity. That made it harder to insure someone under false pretenses. Insurers also tightened rules around who could be named a beneficiary. Policies could no longer be taken out on individuals without demonstrating an insurable interest – a legitimate financial or familial relationship with the insured.

Written by

Khalid Elhassan

A lifelong history buff, I developed a particular passion for WW2 history as a child, when I spent hours listening to my grandfather, enraptured, as he recounted his wartime experiences in the British East African Campaign and with the British 8th Army in North Africa.

I graduated with a history BA from George Mason University, then went on to get a JD from the University of Virginia School of Law. After lawyering for a decade, I moved to sunny Rio de Janeiro and a less demanding career, opening a tourism agency in Copacabana.

A big chunk of my free time is spent blogging (you can follow me on Quora https://www.quora.com/profile/Khalid-Elhassan ) or freelance writing, mostly about my favorite subject, history.