Description
1-Punishments of insurance fraud
a. real life Examples of how insurance fraud cases were handled with details
b. Different levels of punishment based on level of crime.
2- Progression of punishments
a. Examples of punishments over time
b. How to determine the punishment
Gov and academic resources only it must be at least 4 pages and please provide and cite all sources that's used
Explanation & Answer
Attached.
Running Head: INSURANCE FRAUD
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Insurance Fraud
Student’s Name
University Affiliation
INSURANCE FRAUD
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Introduction
Insurance fraud takes place when an individual deceives an insurance firm or an agent to
give them money that they are not entitled to be given. In the same way, insurers and agents may
defraud consumers or their fellow agents (Insurance Fraud, n.d). Fraud emanating from
insurance are of two types. That is soft or hard fraud. Hard fraud is when an individual fakes an
accident, theft, injury or other loss in a deliberate way so that they may collect money from an
insurance firm in a legal manner. In most cases, crooks act independently, however, with time
there is an emergence of organized crime that may steal millions of dollars (Insurance Fraud,
n.d). On the other hand, those people who are always quite honest will likely tell small lies to the
insurance company that they are dealing with. Most people are of the idea that this habit is
harmless. However, fraud is still a crime and will most likely lead to the rise in the insurance cost
of every individual.
Punishment for insurance fraud
Whenever a person makes a false claim for to a company dealing with insurance, it
affects everyone registered with the insurance company or agency. Fraud, therefore, affects
everyone even those people who do not engage in the vice. Therefore, the vice has some
stringent penalties that are meted on anyone who engages in it. The following are some of the
ways of dealing with those who are caught in fraudulent activities.
There are many federal statutes aimed at combatting insurance fraud, and hence they make the
activity illegal. For instance...