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Welcome to the Big"I" Virtual University's FraudCenter Frequently Asked Questions Page.
Here are some common questions that are typically asked by insurance professionals about insurance fraud. These topics cover issues that may be relavent to agents, adjusters and private investigators in the field. To submit your own questions to be posted, click on the "Ask The Expert" button below to send an email to an Insurance Fraud Expert.
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| 1. |
What is insurance fraud? |
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Insurance fraud is when a deliberate material misrepresentation results in an unjustified monetary or financial gain. |
| 2. |
Is insurance fraud a crime? |
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Yes. In fact Insurance Fraud is the second largest economic crime in America today. |
| 3. |
How big is the problem? |
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Huge… It has been reported that insurance fraud is an $80-120 billion dollar a year industry. In comparison, Wal-Mart was reported at the top of Fortune 500 with $379 million in revenues. |
| 4. |
What is the public opinion of insurance fraud? |
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Nearly one of four Americans say it’s ok to defraud insurers. (Accenture, Ltd.)
Some 8 percent say it’s “quite acceptable” to bilk insurers, while 16 percent say it’s “somewhat acceptable.”
About one in 10 people agree it is ok to submit claims for items that aren’t lost or damaged, or for personal injuries that didn’t occur.
Two of five people are “not very likely” or “not likely at all” to report someone who ripped off an insurer. |
| 5. |
What Insurance Sector is Most Affected by Insurance Fraud? |
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Insurance fraud affects all lines of insurance. Medical Fraud is the leading target of insurance fraud followed closely by workers’ compensation and automobile fraud. |
| 6. |
How does Insurance Fraud Effect Me? |
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It affects you in the amount of premiums you pay annually. It is reported that most consumers pay $900-$1,000 more in higher premiums as a direct result of insurance fraud. |
| 7. |
What can I do if I Suspect Someone is Committing Insurance Fraud? |
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Most states have a hot line to report suspect insurance fraud. If you cannot locate one in your area you can report your suspicions to NICB (National Insurance Crime Bureau) at 1-800-835-6422. |
Ask The Expert:
Click on the link below to send an email to our Insurance Fraud Expert (info@fraudeducation.com). You can expect a response within 24 Hours,
and your question may even be posted on this page shortly thereafter.
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