Doubtful under the circumstances… but I would be sure to research local law on what constitutes a false and malicious statement (and by whom) in this context. 

If you know the answer please provide the electronic communication act or case law.  

I remember this well in Vegas during those time frames and in the markets that were foreclosure clusters.. bad actors advocating this.. could it work maybe .. does it trash owners credit for sure.

I think it's better insurance against bad actors, frivolous booking, etc.

This is a terrible place for a consumer to get legal advice, especially with all the potential for scammers and bad actors. 

And I teach how to buy and structure the deal, so one isn't violating banking laws or the S.A.F.E Act or equity skimming, among other serious things.

Since it was brought up earlier I figured it was worth mentioning what is always or sometimes exempt from bankruptcy:-State and federal income taxes within the last three years-Student loans (mentioned above)-Vehicle accident claims due to drunk or reckless driving-§523 Bankruptcy Code, money obtained by fraud:§523 Bankruptcy Code-Eve of bankruptcy luxury purchases-Willful and malicious injury to another or his property-Government fineNone of that will really help you at all, but I figured it would be good to know anyway ;-)When you make loans you assume default risk.

We've asked the police to pick-up patrols; we've identified and evicted most of the bad actors. 

Cut grass in your neighborhood.Shovel snow from sidewalks and driveways in your neighborhood.Sell hot dogs at the swap meet with your parents help.Be a TV Actor for Disney or something like that.

The following perils are the most common perils that are insured against with DP1 insurance:• Fire & Lightning• Internal Explosion & External Explosion• Windstorm & Hail• Riot & Civil Commotion• Smoke• Aircraft• Vehicles• Volcanic Explosion• Vandalism & Malicious MischiefIt is important to point out that not all DP1 insurance policies cover all of the perils listed above.