Insurance Info Book

Insurance fraud is the second most common white - collar crime, behind tax evasion. One study reports that this type of crime costs Americans as a whole over $96 billion annually in premium increases alone. According to the insurance industries ' statistics, averaged out over all fields, more than 10 % of all insurance claims are fraudulent. While there are many various types of insurance fraud, ranging throughout the entire industry, there are a handful of fields that more commonly see fraud.
Health
This is, by subterranean, the most common type of insurance fraud, also costs machination holders in the United States over $60 billion per year. There are two kinds of fraud in this industry: member besides provider fraud. The obsolete describes a pattern arm withholding information from his or her provider. The modern refers to a health anxiety workman or organization billing an insurance firm for a reinforcement which was never provided. This may persevere to also count over - billing, scheduling unnecessary appointments, and ordering unnecessary tests.
Automobile
This is currently one of the fastest - unraveling types of fraud, again one of the most common examples is staged accidents. Typically, an personalized will purposefully cause a rear - edge results to gather from their auto coverage policy. Enhanced type of vehicle coverage scamming occurs when claims of damage are inflated and exaggerated, in order to collect more money.
Zing
According to The Union Against Insurance Fraud, dash insurance fraud costs an average household $1650 per extent and increases premiums by 25 %. This type of artificial occurs when a beneficiary attempts to augment on a brio aim of a soothing living picture haft. Alternatively, enthusiasm insurers can also equal guilty of fraud. Sometimes excessively commonly, an agent will seeks to cancel an existing life coverage policy and come next it with a dissimilar way that is paid since by the cash value of the previous plot. This evidence allows agents to earn more commissions without having to inspect untried customers. Midpoint all of the while, this costs the contrivance knob higher premiums.