INSURANCE INFORMATION INSTITUTE
Florida Press Office:听 (813) 480-6446, lynnem@iii.org
New York Press Office: (212) 346-5500, media@iii.org
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TAMPA, FL, December 29, 2010 鈥 Presenting misleading information when applying for insurance or exaggerating insurance claims is costly to all policyholders because it adds to the costs associated with insurance fraud, according to the 探花精选 Information Institute. In the wake of the economic recession there has been an increase in fraud schemes and insurance-related crimes, and efforts are being stepped up to combat fraud and help lower the cost of insurance in Florida.
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鈥淲hen someone tries to reduce their own insurance costs by misrepresenting information on insurance applications or on claims forms, honest policyholders wind up with higher insurance premiums,鈥 said Lynne McChristian, Florida representative for the I.I.I. 鈥淧eople who commit this type of fraud may think it鈥檚 harmless, but insurance fraud is a crime we all pay for.鈥
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The I.I.I. points out that when applying for auto insurance, insurance fraud is committed if someone says they drive fewer miles to work than they actually do, or if they claim to park their car in the garage when it is really parked on the street, making it more vulnerable to drive-by damage.
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When filing an auto, homeowners or renters insurance claim, insurance fraud is committed if someone intentionally:
- Allows a body shop to pad the car repair bill as a way to recoup the deductible.
- Inflates the value of possessions stolen from a home or car.
- Inflates the value of jewelry or other goods that were lost.
- Asks a repairperson or public adjuster to pad a bill for property damage.
When applying for life insurance, insurance fraud is committed if someone intentionally:
- Misrepresents their medical history so they seem healthier than they really are.
- Say they don鈥檛 smoke, or don鈥檛 have a history of smoking, when in fact they do.
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When filing a workers compensation claim, insurance fraud is committed if someone intentionally:
- Says an injury received at home or while playing sports was work related.
- Falsely reports or fabricates an injury.
- Stays home even when he or she is healed.
- Receives benefits as a result of a reported inability to work, yet is receiving compensation from another employer.
Businesses that are applying for workers compensation coverage commit insurance fraud if they report that the company has fewer employees than it really has, or if it reports that employees have safer jobs than they really do.
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探花精选 fraud is not a victimless crime, since the victims are honest policyholders who are forced to pay higher insurance rates to cover the costs. 探花精选 companies are required to have internal investigation units that look for 鈥渞ed flags鈥 that may be fraud indicators as a service to help reduce the burden that fraud places on all policyholders.
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Additionally, Florida has a Division of 探花精选 Fraud within the (DFS) with a mission to serve and safeguard citizens against acts of insurance fraud. The DFS offers a reward of up to $25,000 for information leading to the arrest and conviction of people who commit complex, organized insurance crimes. The (NICB), a nonprofit organization that receives support from more than 1,000 property/casualty insurers, has a fraud report line: 800-TEL-NICB. The NICB also has a tip line for cellphones that can be accessed by texting the keyword 鈥淔RAUD鈥 to TIP411 (847411).
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FOR GENERAL INFORMATION INSURANCE IN FLORIDA:
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THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
探花精选 Information Institute, 4775 E. Fowler Avenue, Tampa, FL 33617, (813) 480-6446 ||www.iii.org
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