insurance arizona Fraud

2007-03-08 10:33:40

( Insurance )



Insurance fraud is a problem for insurers all over the world. What should you do if you are an insurer selling insurance arizona, whether it is arizona car insurance or farmers insurance tuscon?

What is insurance fraud?

It is a crime. It is a class six felony which could mean many years in jail or a hefty fine.

If you claim from insurance arizona intending to defraud, injure or deceive an insurance company, it is a felony.

Most commonly, insurance fraud involves:
• Claim fraud
• Vendor fraud
• Premium fraud.

If you give inaccurate and incomplete information on an application or claim form, this is not necessarily insurance fraud. Insurance fraud is represented by four key elements:
1. Knowledge – false statement of fact or knowledge of wrongdoing
2. Intent to defraud – deliberately and intentionally deceiving the insurer
3. Misrepresentation – assisting in making or creating a false impression leading to a claim payment
4. Reliance – the claim wouldn’t have been paid unless you had made a misrepresentation.

Does fraud in insurance arizona affect me?
Everybody thinks that insurance fraud is a victimless crime, but the estimated loss runs into a staggering amount of money every year. A significant percentage of all claims (health, workers’ compensation, life, property and casualty) are fraudulent.

Although there are no exact figures, the dollar losses in insurance arizona are enormous.

For example, a third of all bodily injury claims of insurance arizona are exaggerated or fraudulent. Auto insurance Arizona claims which are fraudulent cost the policy holders a couple of hundred dollars in higher annual premiums.

Higher premiums don’t only affect you as the individual policy holder. Commercial businesses in turn increase their customer costs. All of which, at the end of the day, means more money out of your pocket.

What to do if you suspect a fraudulent claim.
If you think someone has made a fraudulent claim, you can file a report with the Fraud Unit anywhere in Arizona. You need to provide as many details as possible:
• Suspect’s name
• Social security number
• Date of birth
• Insurance company
• Type of claim being filed, etc.


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