What Is Insurance Fraud?
Insurance fraud occurs when people deceive an insurance company or agent to collect money to which they are not entitled. Insurance fraud perpetrators can be members of complex, organized fraud rings or the next-door neighbor looking for additional income.
Examples of fraud include: inflating a claim to get out of paying a deductible or to cover past insurance premiums; orchestrating the destruction of an owned automobile, home or business to collect insurance; exaggerating the extent of a minor injury to collect workers’ compensation benefits; and billing insurance companies for medical services that were not provided.
Wayne County Prosecutor Kym Worthy speaks at the Michigan Insurance Fraud Awareness Coalition news conference on October 13 at Detroit Fire Headquarters. Worthy announced a cooperative effort with the insurance industry and private business to investigate and prosecute arson-for-profit in Wayne County. Find out more about the anti-fraud proposal.