The majority of people who commit insurance fraud don’t think they’re hurting anybody directly. In fact, they think they’re hurting major corporations who have enough money that they don’t care anyway. This is not the case. In the United States, insurance scams cost an estimated $875 per person annually. It adds up to approx. $80 billion per year, and with the rapid growth of technology, it’s getting harder and harder to catch.
There are different types of insurance fraud.
One of the leading forms of insurance fraud is in our health care system. Health care fraud results in over $30 billion per year in the United States. There are two kinds of health insurance fraud: member fraud and provider fraud. An example of member fraud is when you deceive your insurance company by purposely not declaring something, where an example of provider fraud is if you were to bill for a service that was never rendered.
One fast-gorwing form of insurance fraud is automobile insurance fraud. Staged rear-end car accidents are a common form of this type of fraud. This is when a scam driver will stop suddenly in front of a car deliberately so they other car rear-ends them. Another popular scam is when there’s already an accident, you add damage purposely in the hopes to collect more money. Often times, this works, which is why it’s important to take photographs of the damage.
Another form of insurance fraud is when the beneficiary tries to collect the benefits while the insured is still alive. This is called life insurance fraud. The best thing you can do in this scenario is to know your insurance broker. When you go in to pay your premium on the insurance, don’t pay in cash. make sure you understand your policy, and if you don’t, bring it to someone who does.
And last but not least, I want to talk about fire insurance fraud. This form of fraud is very common because it’s hard to prove. If you lose your house to a fire, who’s stopping you from declaring stuff you didn’t have in the first place? There is no real way to prevent this kind of fraud. This will haunt you in your taxes and that’s about it. The best thing you can do is report it if you hear of anyone making false claims.
As I mentioned previously, the best thing you can do if you’re a victim of fraud or if you hear of any sort of fraud taking place, is to report it. You can report fraud to the National Fraud Information Center at 1-800-876-7060. I hope this article has opened everyone’s eyes a little bit to how this serious crime is affecting each and every one of us.
Posts Tagged ‘ Two Kinds ’
The debt consolidation will be chosen by the debtors if the numbers of the loans are very large and continuously increase from time to time. The amount of interest that the debtors should pay becomes increase too and it is not same with the first interest before consolidation. The debtors usually consolidate debt if there is no other choice to mortgage their assets or other precious things that can be the guarantee.
If you have ever owed money in the bank or company, usually you will be offered two kinds of payment methods and loans. The first, you will be offered the method with a low interest of your debt, but you should mortgage your assets. Usually, the thing which is proper to be the guarantee is property mail of your buildings or tunes. The second, you do not have to mortgage anything, but you should pay a high interest. The second is called the unsecured consolidation loans.
The unsecured debts sometimes become more useful because the debt collectors will be confused of the abundant debt they should collect from many debtors. Although the rates of interest are very high, you do not have to worry of loosing your assets; this due to unneeded mortgaging one of your precious assets.