| Insurance fraud, also called false insurance claims | | | | over staged accidents. Some types of frauds are |
| refers to false claims that have been filed with | | | | more rampant in some states. For instance, the |
| the intention of defrauding an insurance provider | | | | sale of unauthorized health insurance is a common |
| or user. Insurance fraud may be committed | | | | fraudulent practice in Texas. In this case, |
| against insurance companies or insurance policy | | | | unlicensed companies sell false insurance policies |
| holders. According to government estimates, | | | | even though these do not meet the |
| fraudulent insurance claims account for 10% or | | | | stateâs minimum financial requirements. |
| about $30 billion every year of the expenses | | | | The company continues to collect premiums and |
| incurred by the insurance industry. | | | | doles out insignificant amounts of money from |
| Common insurance frauds include inflating actual | | | | time to time. However, when there is an |
| claims, known as padding, submitting claims for | | | | emergency and a really heavy claim is made, the |
| false injuries or fraudulent claims of damage, | | | | company simply vanishes from the scene. |
| submitting tweaked facts and submitting claims | | | | |