Insurance Fraud

Insurance Fraud

http://insureme.us/insurance-fraud/

In hard fraud, someone intentionally arranges and/or stages a loss. Commonly collisions, theft or fires that are covered by insurance policies are used to deceive insurance companies to pay out for damages, sometimes involving millions of dollars. Soft fraud is more common than hard fraud. This is when policyholders exaggerate on legitimate claims. An example would be someone who claims more damage than was really done to his or her car in the case of an automobile collision. Misrepresenting yourself or hiding the reality of pre-existing conditions during an application for health insurance also counts as soft insurance fraud.