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What Is Insurance Fraud? Fraud is a serious matter in our society. Insurance fraud is committing a crime of deception with the intent to defraud or make someone else pay for some type of injury, loss, or damage. Insurance fraud can be classified as a white collar crime as well. The state of Georgia does have laws that are designed to protect consumers from insurance fraud. These laws are in place to protect the consumer by punishing those who commit insurance fraud and protecting the rights of the injured party. The Georgia Department of Insurance has created the Office of Insurance Fraud Enforcement. This office is responsible for investigating insurance frauds and holding insurance fraud investigators accountable for bringing these criminals to justice. As you may know, there are many insurance frauds in the state of Georgia. There are many different types of frauds, such as: o Insurance kickbacks. This is when an insurance company in Georgia give a kickback to an insurance agent for selling them a policy or making referrals to them. If the company knows they are overcharging a client, they may try to give that person a break on their insurance rate by giving them a "cut". o Insurance mis-selling. In this case, an insurance fraud investigator would look into the claims that a certain company was making and would make sure these claims were valid. They would also look into how the insurance fraud was committed and whether or not the company had any previous complaints against it. If they determined the company had committed insurance fraud, the next step would be to investigate the validity of the claim and any punishments that should be handed down to the company. o Insurance kickbacks. Another example of insurance fraud in Georgia is kickbacks. If an insurance company in Georgia receives money from a client, they could legally give that money back to the client. In doing so, the company would be committing insurance fraud. A kickback is when an insurance company gives back money to a client based on the recommendation of an agent. o Mis-sold policies. T here are many examples of insurance fraud in Georgia as well. One of the most common is when a company will sell a policy to a person and then fail to honor the contract once that person has bought it. It is illegal for an insurance company to sell a policy to a person if the company has never delivered on the initial promise. For insurance fraud in Georgia, there are several insurance investigators who look into policies that have been sold to people that have never existed. o Insurance kickbacks. These can also take place at the hands of an insurance agent or company. If an agent agrees to cover a customer for a claim, but later tries to get the customer to pay more money, this is an example of kickback. Insurance kickbacks can be in the form of higher commissions to agents or payments made to the insurance company to buy more policies from them. The state of Georgia has taken action against several insurance companies for kickbacks because they can amount to millions of dollars. Insurance fraud in Georgia does not only happen to customers. In fact, Georgia residents are the ones who are the most likely to become victims of insurance fraud. This is because those who are working in the insurance field in Georgia are required to have certain training and obtain certifications in order to work in the field. This is done in an attempt to prevent insurance fraud from taking place. In addition, there is a lot of education and protection that is offered to employees working under these conditions, meaning that workers can be sure that they will not become a victim of fraud themselves.
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