Everyone Pays the Price for Insurance Fraud

Today's headlines are startling to say the least. Here are a few examples:

• Erie, PA – Former superior court judge sentenced for auto fraud
• Ligonier, PA – Financially troubled car dealership torched, business owner dies in apparent arson
• Baltimore, MD – Man indicted for faking life insurance claim
• St Martinsville, LA – Insurance agent charged with stealing premiums from clients
• Pomano, CA – Man who changed coverage after accident, charged with insurance fraud
• Virginia Beach, VA – Doctors suspected in $200,000 scam of Tricare insurance program
• Boise, ID – Twin Falls residents sentenced in arson case

People from all walks of life are struggling to get by in this economic downturn. Resorting to fraud is costlier than most people think.

In Idaho, insurance fraud is a felony. A person convicted of fraud could spend up to 15 years in jail and be fined up to $15,000. Arson, also a felony, carries a steeper penalty of up to 25 years in jail and up to a $100,000 fine.

In addition to the cost the perpetrator must pay, every American family also pays a high price for insurance fraud. The Insurance Research Council says that percentage of fraudulent claims is on the rise, and these claims “help drive up the cost of insurance for everyone.”

If you suspect fraud, call the Idaho Department of Insurance to report it. The number is 334-4250 in Boise, and 800-721-3272 toll-free statewide. Or call the fraud hotline, 866-939-7226.