Insurance Fraud Costs Us All!

Insurance fraud costs each Florida family an additional $1,500 per year* in increased premiums. In fact, it can inflate your premiums by as much as 30 percent, according to the National Insurance Crime Bureau. This includes the money you pay for life, auto, health, homeowners and other types of insurance. You can protect your personal and family pocketbook by learning about the many different types of fraud schemes and scams. Some common examples include:

Fictional injury – An attorney informs a small-business owner that a client suffered serious injury after falling at the owner’s place of business. Actually, the attorney and client work together to bilk insurance money through phony accident claims.

Rigged robbery – A small-business owner files a phony claim of stolen property or exaggerates the value of missing items.

Arson for profit – The co-owner of a financially strapped business intentionally sets fire to the workplace in hopes of obtaining insurance settlement money.

Unauthorized referral – A laboratory bills an insurance company for a patient’s tests using information stolen from a referring physician. Actually, the laboratory has never tested the patient.

Deceptive claim – An employee who suffers a minor injury at work exaggerates the loss or uses a pre-existing injury to file for workers’ compensation.

There are many other types of insurance fraud. If you suspect such a crime has occurred, call the Florida Department of Financial Services Fraud Hotline toll-free at 1-800-378-0445.