Hello, children. Tonight’s little law blurb is on Insurance Fraud. It’s a simple concept that works two ways – either individuals rip off insurance companies or companies rip off individuals.
Intentionally destroying a car, home, or other insured item in order to collect the insurance face value is a classic example of insurance fraud. Companies can also commit insurance fraud, by selling fake insurance to unsuspecting customers, selling insurance in states which the company is not licensed to do business in, or the outright theft of clients’ insurance premium by the insurance brokers or dealers.
Have fun out there!