- Aarthi Ram
Common Examples of Insurance Fraud
Updated: Aug 4, 2020
Insurance Fraud is when an individual deceives an insurance company in order to falsely obtain money they are not entitled to. This is a crime illegal in all fifty states, and there are a variety of different types of insurance fraud.
Property Insurance Fraud occurs when an individual manipulates his or her own tangible properties in order to receive a financial benefit from their insurer. A popular example of Property Insurance Fraud dates back to the early 2000’s in the United States vs. Thompson case, where Marc Thompson burned down his own house with his mother in it, forging a “suicide.” Financially suffering at the time, Thompson hoped that his false claims would bring him a monetary gain from his insurer; however, he was ultimately found guilty in charged with 190 years in federal prison.
Healthcare Insurance Fraud occurs when an individual scams their healthcare insurance provider by claiming to have had a false injury or healthcare issue. They will likely receive false payments or even prescription medication supporting their dishonest claim. Another type of healthcare insurance fraud can occur just as easily on the opposite end of the spectrum, where a surgeon or practitioner can falsely claim to have performed a procedure they didn’t actually perform. This form of fraud is illegal and is also considered a federal offense.
Automobile Insurance Fraud occurs when a person exaggerates his or her automobile accident, claiming that the extent of damages on their vehicle was far further than that of reality. They may do this to receive a bountiful check from their insurer, but automobile fraud, much like the aforementioned claim, can result in serious consequences. Here at AZ Insurance Team, we have insurance specialists who can advise you on the specifics of Automobile Fraud.
Life Insurance Fraud occurs specifically when an individual fabricates his or her own death in order to gain the benefits from their insurer. This can also occur if one were to falsify the death of a close relative, again, reaping the benefits of this assertion. Again, AZ Insurance Team specializes in Life Insurance and has information concerning all aspects of life insurance.