This is more than MLC craziness, it is more like magical thinking.
Actually in my experience MLC is just like magical thinking - whatever reality the MLCer constructs is true to them. My previously upright law abiding citizen xh tried to get one of his sons to take the rap for a minor offence!!!!!! Unbelievable. He said when everyone shrieked at him that he couldn't see why it mattered.
So defrauding the insurance company - no problem. They are entitled. Reality reforms around them. That is what enealbes them to walk away from a long marriage