Insurance: it is there to help people when they need it. Unfortunately, so many people have tried to take advantage of the system that, now, insurance companies are constantly on the lookout for fraudulent or questionable claims. Anyone, whether they live in Louisiana or elsewhere, who is thought to be abusing the system may face an insurance fraud charge, which can carry stiff penalties if one is convicted.
What is insurance fraud exactly? By definition, this type of fraud is knowingly and intentionally abusing an insurance policy for monetary gain. This type of fraud is one of the most costly crimes to the American people, as insurance providers pass their losses on to consumers. It is estimated that insurance fraud costs the public roughly $80 billion a year.
What are some examples of insurance fraud? One would be a person damaging his or her car and then reporting it as a hit and run to his or her insurance in order to get it fixed. Another would be filing disability claims when one does not really have a disability. Finally, the last example would be a medical provider inflating a patient's bill in order to get paid more.
Insurance fraud comes in many forms. For it to be a crime, the individual facing a fraud charge needs to have intended to take advantage of the insurance system. If a prosecuting attorney can prove that is the case and one is convicted on a fraud charge, one may spend time behind bars, have to pay fees and may be ordered to pay restitution. Louisiana residents who find themselves facing accusations of committing insurance fraud can help themselves by seeking assistance from an experienced criminal defense attorney.
Source: ldi.la.gov, "Insurance Fraud", Accessed on April 4, 2018