Insurance fraud is a nasty practice that occurs when individuals or businesses try to rip off their insurance company. Usually, the goal of insurance fraud happens when someone wants to get a payout for something they shouldn’t, but there’s a lot more to it than that. What’s more, insurance fraud is a crime that can result in fines, jail time, and even extended prison sentences.
So, now that we know insurance fraud is a crime, is insurance fraud a felony? That’s what you’ll find the answer to in this article. Read on to learn more below.
What Is Insurance Fraud?
Insurance fraud can be many things, but it tends to be the act of deceiving an insurance company. Typically, it happens when someone enters false information, tries to get more money, or if someone intentionally does something to trigger an insurance payout. That said, there is often a gray area with insurance, so sometimes it’s hard to tell if a specific action is insurance fraud.
Examples of Insurance Fraud
If you want to know what insurance fraud looks like in practice, don’t worry, we have you covered. Some examples of insurance fraud include cases that involve:
● Making false statements or withholding information on insurance applications
● Staging accidents, like house fires, to get insurance money
● Faking an injury or even death for a life insurance policy
● Making a fake stolen vehicle report
● Fraud cases involving worker’s compensation
● Stealing premiums
● Lying about the cause of a financial loss
These are only some examples of insurance fraud, and you’ll find that it can vary or change based on the state, the type of policy, and even the people who are involved.
Is Insurance Fraud a Felony?
Yes, insurance fraud is a felony, but it’s not always charged as one. Felony cases of insurance fraud tend to deal with large amounts of money, several fake claims, and more extreme measures, like burning a building down. In these cases, courts won’t have any problems bringing someone to trial for felony insurance fraud, and the penalties can be hefty.
Some examples of felony insurance fraud penalties include:
● Fines
● Probation
● Restitution
● Community service
● Prison
● Jail
● Loss of rights
● Property liens
The outcome of an insurance fraud case will vary based on the severity of the crime, so keep that in mind.
Is Insurance Fraud a Misdemeanor?
Not all insurance fraud cases are felonies, so some may be charged as misdemeanors. This is common for small instances of insurance fraud that doesn’t amount to a lot of financial loss or theft. For most misdemeanor cases, the result is a fine, up to one year in jail, and restitution.
Is Insurance Fraud a Public Record?
Insurance fraud tends to be public record in the event that the result is a felony or misdemeanor charge. That said, insurance claims aren’t public records, so this information won’t become available until it goes to court. However, the investigation process may be public if someone was arrested for insurance fraud.
How to Find Insurance Fraud Records
If you want to find insurance fraud records you have a few options, with the best one being an online criminal records search tool like Information.com. What makes Information.com’s criminal records search tool efficient is how fast it can comb through millions of public records databases to help you find criminal records, including insurance fraud. Plus, starting your search is a breeze because all you need is a first and last name, city, and state to get started.
Once the tool completes the search, you can open the full report to view all public records. Not only will you find insurance fraud records but you’ll also find information about other criminal incidents, financial records, address information, and much more.
Aside from a criminal records search tool, you can also visit courthouses where the case went to trial to access insurance fraud records. Some police departments may also house records of insurance fraud if they made the arrest.
Is Insurance Fraud a Felony: Find Insurance Fraud Records Today
Insurance fraud is a serious crime. Whether it’s a misdemeanor or a felony, insurance fraud cases are complex and knowing what happened throughout a case can be crucial if you’re running a background check or want to learn more about someone.
What’s more, if you went through an insurance fraud case in the past it’s a good idea to see what shows up on your record along with how old the records are because many states have look-back periods. At the end of the day, it’s always best to be prepared.