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About Insurance Fraud In Michigan
Insurance fraud is a crime when a person receives insurance money for filing a false claim, inflating a legitimate claim or billing for services that were never received. The public is concerned about the insurance fraud problem.
According to a Gallup poll, citizens ranked insurance fraud an 8.9 on a 10-point crime scale. That is why a law in Michigan makes it a felony to commit insurance fraud. Insurance fraud also results in a maximum fine of $50,000 and mandatory restitution.
Insurance has many faces. It ranges from people who "pad" legitimate claims to elaborate schemes perpetrated by members of an organized ring.
Examples of fraud include:
- A healthcare provider who bills insurance companies for services that were never rendered.
- A person who inflates a cliam to get out of paying a deductible or to cover past insurance premiums.
- An individual who orchestrates the destruction of an owned automobile, home or business to collect insurance.
- An employee who exaggerates the extent of a minor injury to collect workers' compensation benefits.
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