What Constitutes Insurance Fraud?

Thousands of insurance fraud cases are reported every year to Fraud Bureaus established all over US. Insurance fraud happens when an individual or a company intentionally misrepresents facts to claim insurance. The job of these bureaus is to investigate and hold the perpetrators liable for the fraud. Fraud is treated as a misdemeanor or felony depending on the nature and extent of the crime and criminal defense lawyers work white collar crime cases all the time.

You can find a legal professional of this type right here: http://criminal-defense.usattorneys.com/. If you made a mistake, face those charges and work with the prosecution. The results are normally much lighter if you cooperate. If you continue to fight, deceive, and deflect, that just motivates the prosecution that much more to hammer you.

The website above is no scam. It is authentic and countless people all around America who needed legal help have been granted such help.

White collar crime such as scams are not punished hard enough – this is why they are popular

Some insurance companies can also be involved in fraudulent activities. There are some providers that do not honor a claim even when there is no reasonable ground for denial. Most insurance providers pay huge retainers to legal teams in case they are forced to face prosecution due to fraud. Another common type of insurance fraud is healthcare fraud, which falls under the purview of federal laws.

On top of this, many people believe the federal government does not do enough to fight fraud and white collar criminals that create these scams are not hit by the law hard enough. Some people believe social security is a scam since the retirement age is too early and the numbers do not make sense but that is another story.

The general public pays a very heavy price for this type of fraud and also the destruction of Fannie Mae and Freddie Mac by Barney Frank but that is another topic too. Insurance providers also lose billions of dollars every year due to fraud. For this very purpose, many providers demand higher premiums to make up for the losses from innocent and honest people like most of us. Along the same vein, millions of working Americans now have higher health care costs to pay for those on the Affordable Care Act’s rolls. This is not a bright picture now for America!

Elements that form the basis of an insurance fraud

If a claimant knowingly deceives the company or organization by making a false statement, then it can be construed as insurance fraud and will soon need a criminal defense lawyer. If a person makes an honest mistake then the person will not be held responsible as long as the mistake is reported to the insurance company in a timely manner.

The false statement must have the potential to influence the outcome of the insurance claim. For example, claimants often give false statements and evidence to pitch for a claim which is more than they are entitled to. Some doctors and medical institutions often provide false statements showing that they provided a patient certain costly services which they in fact did not then they issue a claim to their healthcare insurance providers. Criminal defense attorneys represent people who make this fraudulent choices.

Additionally, criminal defense lawyers reiterate that the false statement must have some bearing on the claim. A false statement that has no impact on the claim is not considered fraud. For instance, if a policy holder claims that his business has received the best Entrepreneur of the Year award when it is hardly the case, he/she will not be charged with fraud since the statement is completely unrelated to the claim.

Types of insurance fraud

Healthcare Fraud: This happens when a physician bills an insurance provider for a procedure that was never performed. It can also happen when an individual claims money for injuries or ailments that have not happened. 

Automobile Claims: People often exaggerate the extent of damages following a DUI accident or the severity of their injuries to receive higher compensation from the insurer.  

Life: Claimants can falsify their own death or death of a loved one to claim insurance. This is usually done by forging a death certificate. Not good!

Property Fraud: Property owners can claim insurance by setting fire to the premises that they own or by staging a fake robbery where they can show that certain insured and expensive items simply were stolen. 

Sometimes, some people unknowingly become involved in some type of insurance fraud. If you find yourself in such a situation, you need a criminal defense lawyer as soon as possible. Where to find one has been illustrated and the link is in the same paragraph as well. Get on it. You do not have too much time to lose.