Insurance Fraud

COMMON REASONS WHY PEOPLE COMMIT INSURANCE FRAUD

People who normally would not engage in criminal behavior commit insurance fraud because they:

  • Perceive it as a victimless crime perpetrated against a faceless insurance company.
  • Hope to make up for premiums they had paid in the past.
  • Think many people inflate or falsify insurance claims.
  • Believe they will not get caught.
  • See it as a quick and easy way to make money.

WHO PAYS FOR INSURANCE FRAUD?

We all do, in the form of increased premiums. INSURANCE FRAUD IS A CRIME Section 431:2-403, Hawaii Revised Statutes, makes it illegal to present a false claim, to present false information on a claim or to seek legal recovery through these means.

INSURANCE FRAUD PENALTIES

A person who commits insurance fraud can be charged with a:

  • Class B felony – if the value of the benefits, recovery or compensation obtained or attempted to be obtained is more than $20,000.
  • Class C felony – if the value of the benefits, recovery, or compensation obtained or attempted to be obtained is more than $750.
  • Misdemeanor – if the value of the benefits, recovery, or compensation obtained or attempted to be obtained is less than $750.

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