Michigan Insurance Fraud Awareness Coalition
Put the brakes on insurance fraud
Insurance fraud is a crime when a person receives insurance money for filing a false claim, inflating a legitimate claim or billing for services that were never received. The public is concerned about the insurance fraud problem.
According to a Gallup poll, citizens ranked insurance fraud an 8.9 on a 10-point crime scale. That is why a law in Michigan makes it a felony to commit insurance fraud. Insurance fraudsters face up to four years in jail, a maximum fine of $50,000 and mandatory restitution.
Committing insurance fraud can result in job loss and harm to personal and professional reputations and family relationships.
Insurance fraud doesn't only victimize insurance companies, it hurts everyone who pays for insurance.
Insurance fraud has many faces. An employee who exaggerates the extent of a minor injury to collect workers' compensation benefits. It also ranges from people who "pad" legitimate claims to elaborate schemes perpetrated by members of an organized ring.
Examples of fraud include:
- A healthcare provider who bills insurance companies for services that were never rendered.
- A person who inflates a claim to get out of paying a deductible or to cover past insurance premiums.
- An individual who orchestrates the destruction of an owned automobile, home or business to collect insurance.
- An employee who exaggerates the extent of a minor injury to collect workers' compensation benefits.