What is insurance fraud?

Insurance fraud is a form of consumer fraud that involves a person submitting false or inflated insurance claims in order to obtain money for which they are not entitled. In Delaware, insurance fraud is considered a criminal offense that can result in significant fines and even prison time. There are several types of insurance fraud. Perhaps the most common is when a person intentionally misrepresent information on an insurance application, such as the amount of coverage or the age of the insured person. Another type of fraud is when an individual solicits a payment from an insurance company based on a false or exaggerated claim. This can be either a false report of an injury or illness, or a claim for a much higher amount than is actually justified. Insurance fraud can also occur when an insured individual provides false or misleading information to an insurance company in order to receive a larger payout than they deserve. This could be done by providing incorrect information or even lying about an injury or illness. Insurance fraud is a serious crime and can have costly consequences for those convicted. In Delaware, individuals found guilty of insurance fraud can face both criminal and civil penalties. They can be fined up to $50,000, face a prison sentence of up to 15 years, or both. Insurance fraud can also have an impact on the individual’s insurance premiums, as many insurance companies will raise rates for those convicted of fraud.

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What is insurance fraud?

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