The difference can get very thin and yet no law gets passes though. For instance there is a no-banking list in most countries: you won’t be able to use any ban

The difference can get very thin and yet no law gets passes though. For instance there is a no-banking list in most countries: you won’t be able to use any banking service in that country if a single bank puts you on it. That’s usually a default of payment of a cheque, but it’s not limited to, and banks can trigger conditions where the customer will hit a provable offense. In that instance the private entities coordinate to enforce a ban on an individual and no law will pass against that. I’d assume the same would happen for insurances, where there must be a ban on people commiting insurance fraud, and I’d assume it’s not limited to only provable offenses, or charges can be just provoked. Passing a law against these practices requires buy-in from the public and people not just assuming “they have done something very wrong on paper, why should we care ?”