Insurance

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 431:2C, 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.

REPORTING OF INSURANCE FRAUD

To report suspected insurance fraud, call the Insurance Fraud Investigation Branch hotline at (808) 587-7416 or complete and send a Suspected Fraudulent Claim Referral form to the branch. Review the instructions and mail completed form to:

Hawaii Insurance Division
Insurance Fraud Investigation Branch
335 Merchant Street, 2nd Floor
Honolulu, Hawaii 96813

Click here to obtain the Suspected Fraudulent Claim Referral Form (PDF) .