This Was Important
Unfortunately, not all characters, scenes, and descriptions make it into the final version of books or movies. It is a fun activity to watch the deleted scenes on a DVD. This lets viewers see the editing process, plot side tangents, and added insight. However, readers rarely see deleted material from books. I touched on this topic in a previous blog:
When a book gets edited, writers make many choices about what to include. Sometimes great material must get deleted to maintain story or flow. Another reason is if the material is deemed inappropriate or inconsequential. In a recent blog, I discussed deleting such material, and I thought it would be fun to show this impressive description that did not make it into my third book. It described how insurance companies work and how they can launder money. This is when illegally obtained money (like from selling drugs) and make it look legal (such as profit from a business). So here is a “deleted scene.” Note: I chose not to “freshen” this text with my updated editing skills to give my four blog readers some insight into my past abilities.
In a legal insurance company, investors build a capital pool. By law, this capital pool utilizes low-risk investments with a few high-risk investments. Different districts have different rules on the proportions and types of investments. With the capital pool established, the insurance company may then issue policies. The amount of capital available limits the size and a number of policies. As the capital grows, the number and size of policies increases. If they pay a minor claim, it comes out of the profit. If they pay a major claim or several minor claims, the money comes out of the capital pool.
In a legal insurance company, investors build a capital pool. By law, this capital pool utilizes low-risk investments with a few high-risk investments. Different districts have different rules on the proportions and types of investments. With the capital pool established, the insurance company may then issue policies. The amount of capital available limits the size and a number of policies. As the capital grows, the number and size of policies increases. If they pay a minor claim, it comes out of the profit. If they pay a major claim or several minor claims, the money comes out of the capital pool.
Using an insurance company to channel [launder] illegally obtained money follows a basic pattern. An insurance company investor provides the money an illegal enterprise. The insurance company uses this illegal money to supplement the legal capital pool, and this allows the insurance company to issue more insurance policies. The insurance company is then able to generate more legal profit and this profit in the form of a dividend is given to the investor. Many governments fail to regulate the source of capital investment for an insurance company. This allows the insurance company to invest or loan money into a legal enterprise owned by the illegal investor. In this way, illegal money may profit the criminal in two legal ways.
I deleted this scene on 8/15/2020 because it brought the story to a dead stop. Fortunately, I could correct the issue before publishing. Yet, I am still proud of my creation. Very few people (like myself) know the inner world of money laundering. I did not know how insurance companies could become money-laundering entities and when I learned about this gem of an idea, I wanted to share the concept in a book. Surely readers would get entertained and ignore that this description stopped the action. Right? Oh well. But on a side note. Why doesn’t the government check insurance companies to locate such frauds?
My second book also had an impressive scene that I was going to present in this blog. It described a “spark gap radio transmitter.” Unless my reader was a super geek, average readers would not understand what I was talking about, and I had to yank it out.
There are two reasons why I did not put it in this blog. The first is that it was far shorter than I remembered. I thought it was an extensive two-page description and not a single paragraph. The second reason is that the paragraph was far too complicated (detailed) than I remember. So, it will remain in my memory. I end this blog hoping that my four readers now know a bit more about the underbelly of insurance companies.
You’re the best -Bill
October 19, 2022
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