How One Family Fell Into—and Dug Out of—an Insurance Scandal

SANYO-ONODA, Japan—Keijiro Nawata, a 38-year-old truck driver, had finished the day’s deliveries and was changing his truck’s oil in the shop one day in June last year when an uncle called saying something was wrong. Mr. Nawata’s mother had received a letter urging her to pay $3,600 in overdue life-insurance premiums, the uncle said.

Mr. Nawata immediately called the insurance office and set up a meeting for the next day, where the news got worse. He discovered that salesmen had persuaded his mother, who suffers from dementia,…

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