What Is The Penalty For Insurance Fraud ?
| Insurance fraud occurs every day of our lives and in every state of the US. |
|
In fact, when it comes to insurance fraud, people from races, incomes and ages are victimized. It is estimated that insurance fraud costs American an average of $80 billion each year, which roughly works out to $950 for each family.
Insurance fraud is a crime, and different states in the US impose different penalties for insurance fraud depending on the state’s statutes. However, insurance fraud is classified as a crime in 48 states. The states that do not classify it as a crime are Oregon and Virginia. In 19 states, it is mandatory to have insurer fraud plans. This means that insurance companies have to have programs to fight insurance fraud and sometimes they also have to have fraud detection units. In the US, nearly 41 states have fraud bureaus, which are law enforcement agencies who review insurance fraud complains and begin the prosecution process.
The penalty for insurance fraud is under section 1347 of Title 18 in the United States Code. According to this, whoever is guilty of committing insurance fraud can be imprisoned and fined. The imprisonment cannot be more than 10 years. The fine payable can be anywhere from $5,000 to $10,000. However, if the insurance fraud leads to bodily harm, the person committing the fraud can be imprisoned up to 20 years. However, if the scheme leads to the death of a person, the person can be imprisoned for life.
Federal and state governments have finally labeled insurance fraud as a serious crime and have made efforts to punish the guilty. They have also taken numerous steps to prevent this type of fraud by enacting laws at federal and state level.
More Articles :
 |
