What is Insurance Fraud?
Insurance fraud is any deliberate deception perpetrated for the purposes of unwarranted gain. It can occur during the selling, buying, underwriting, and using of insurance. In other words, if you lie or omit information to get something you’re not entitled to during the insurance transaction, that is insurance fraud. Q: I carry worker’s compensation insurance for my business and have been eligible for the Scheduled Rating Plan in which my insurance company has provided me a discount of 25% on my premiums. I am eligible for this credit because I agreed to implement workplace safety recommendations which were provided by my insurance company. My agent recently told me that the insurance company intends to reduce my credits and increase my renewal premium. Can they do that? A: If you were eligible for scheduled rating credits because of your willingness to implement the safety recommendations provided by your insurance company, they cannot arbitrarily reduce those credits just to increase
