Insurance Fraud
Insurance Fraud
Common Reasons Why People Commit Insurance Fraud
- It is perceived as a victimless crime against a faceless insurance company.
- People believe they will not get caught.
- Insurance fraud is seen as a quick and easy way to make money.
- Insurance is obtained after the loss occurred.
What is Insurance Fraud?
Insurance fraud occurs when a person misrepresents or conceals facts when filing an insurance claim or submits a policy application.
The Insurance Fraud Branch does not have jurisdiction over workers’ compensation fraud. See Hawaii Revised Statutes § 431:2-403.
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.