Definition of Insurance fraud:
Insurance fraud is an illegal act on the part of either the buyer or seller of an insurance contract. Insurance fraud from the issuer (seller) includes selling policies from non-existent companies, failing to submit premiums, and churning policies to create more commissions. Buyer fraud can consist of exaggerated claims, falsified medical history, post-dated policies, viatical fraud, faked death or kidnapping, and murder.
The defrauding of an insurer through false and fabricated claims, which can range from minor exaggeration of claims to the intentional causing of accidents.
Insurance fraud is an attempt to exploit an insurance contract. Insurance is meant to protect against risks, not serve as a vehicle to enrich the insured. Although insurance fraud by the policy issuer does occur, the majority of cases have to do with the policyholder attempting to receive more money by exaggerating a claim. More sensational instances, such as faking a death or committing murder for the insurance money, are comparatively rare.
How to use Insurance fraud in a sentence?
- The majority of insurance fraud cases involve exaggerated or false claims.
- Insurance fraud involves any misuse of insurance policies or applications in order to illegally gain or benefit.
- Insurance fraud is usually an attempt to exploit an insurance contract for financial gain.
Meaning of Insurance fraud & Insurance fraud Definition