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When is a person guilty of insurance fraud?

On Behalf of | Sep 7, 2022 | Criminal Charges

Insurance fraud is a crime that can take on different forms in Texas. If you have learned that you possibly might be facing these types of charges, you should know what it entails.

Understanding insurance fraud

Insurance fraud is a crime that can be committed by a buyer or seller. It occurs when a person files an insurance claim filled with exaggerated information for the person’s own financial gain. That financial gain is undeserved and can ultimately cost consumers to have to pay the price.

Any type of fraud is perpetrated for financial gain. In this case, the fraud involves any type of insurance. Texas laws state that insurance fraud occurs when a person gives a false or misleading statement to an insurance company in the form of an application for an insurance policy or to make an undeserved claim.

How insurance fraud occurs

In most cases, insurance fraud takes place when a person exaggerates a claim on their insurance policy. For example, a person gets into a minor fender bender but claims that their car suffered much worse damage for the purpose of gaining more money.

Sometimes, a doctor or other medical professional engages in insurance fraud. Often, this occurs when they bill for services that a patient never had for the purpose of financial gain. However, anyone could commit insurance fraud.

Although rarer, there are times when a policy issuer might also be guilty of insurance fraud.

There are two types of insurance fraud as well: soft and hard insurance fraud. Soft insurance fraud means the claim might be legitimate, but it includes some exaggerated information. Hard insurance fraud occurs when an entire claim is fraudulent.

Insurance fraud can result in serious penalties and being refused insurance in the future. If you are facing these types of charges, it behooves you to construct a sound strategy to refute the allegations.