We will keep this page updated periodically as questions are received. If you have a question about fraud, please send
an e-mail to the Invesitgations Section
What is insurance fraud?
Insurance fraud occurs when someone tries to make money from insurance transactions by deceiving others. More Information
Why should we care about fraud? - Because you pay the price.
The National Insurance Crime Bureau
(NICB) and the Collation Against Insurance Fraud
both estimate that insurance fraud costs 10 to 25 cents
out of every insurance premium dollar YOU PAY.
Fraud is often one of the major contributory factors to rising insurance prices. Insurance fraud is a multi-billion dollar problem and everyone pays: insurance companies, policyholders, consumers…everyone.
For example, More than one third of people hurt in auto accidents exaggerate their injuries. This adds $13-$18 billion
to America's annual insurance bill, notes a study by the Rand Institute for Civil Justice.
Besides rising insurance prices, insurance fraud impacts everyone: innocent people lose their entire life savings, jobs, businesses, houses, families, even their lives by insurance fraud crimes.
Who pays for insurance fraud?
Insurance companies, policy holders, taxpayers and the general public pick up the tab through increased insurance rates, higher taxes, and inflated prices for consumer goods and services
Who commits insurance fraud?
Insurance fraud perpetrators can be members of complex organized fraud rings or a neighbor looking for additional income. People who would never think of committing a crime can find the temptations of claim money from insurance fraud hard to resist.
Is it true if I withdraw a claim, I would not be investigated for a fraudulent claim?
No. That is not correct. Withdrawing the claim will not stop the investigation. If there was misrepresentation to obtain a benefit the investigation will proceed.
What can I do when I witness a fraud? Can I report it anonymously?
You can go to the Department of Insurance web site and complete a fraud referral
. You can report it anonymously on our hotline. However, the only evidence to prove the fraud may be your testimony.
What can I do to help stop a fraud?
You can help prevent fraud by becoming aware of ways to avoid becoming a victim of fraud. Please read Prevention Tips by Insurance Type
. If you witness a fraud please report it to the Department. Also read Types of Fraud to get familiarizes how a fraud happens.