When people suffer from an accident or injury, they rely on their insurance policies to provide a valuable safety net. Unfortunately, it is common to experience some complications while working to receive a fair insurance settlement. With hundreds of thousands of insurance claims being filed every year, it can be very difficult for insurance companies to determine which are legitimate and which are potentially fraudulent.
While it is sometimes viewed as a “victimless crime,” this is not the case. Fraud does not only cost insurance companies significant amounts of money; it also causes rates to increase for all policyholders. Additionally, it makes it more difficult for people with valid claims to persuade insurance companies to trust them.
Insurance fraud can be committed by a policyholder, an insurance agent, or the two of them working together. A few examples of potential acts of insurance fraud include:
- Policyholders destroying their own property and blaming another person or event
- Policyholders claiming fictitious losses after an accident or illness
- Fraud committed by insurance companies against their policyholders
Insurance fraud is taken very seriously by insurance providers and the courts. If you have been accused of attempting to defraud an insurance agency, you could be facing strict penalties. You need to discuss your rights and options with a qualified Clarksburg insurance fraud defense lawyer.