Fraud Flashcards
Define fraud
Fraud is the intentional act of misrepresenting your self to an insurer in order to make a profit
Is a frivolous claim fraud
No as it is a person making a claim that their tort rights have been violated
Is settling an accdent and not informing the insurer fraud?
No, however, it does break a contractual obligation and may result in non-indemnity in the future.
What is fraud a manifestation of
Moral hazard
What happens if an insurer makes a false accusation of fraud?
Could be sue for slander
To be criminally convicted of fraud what is the burden of proof?
Must be proven beyond reasonable doubt, this is very had to do
Soft fraud
Exaggerating a claim
What is the effect of soft fraud
They are much more likely to affect premiums but people don’t report them
Hard fraud
Bogus claim
What is the issue with reporting insurance fraud
Nobody knows the extend of it, estimates by insurance Ireland are not accurate and are not backed up in fact.
What is the only true fact insurers can say about insurance fraud?
How much it costs them to investigate it
What is the major problem in fighting insurance fraud?
Public perception
How does the public see insurers in terms of fraud
They see insurers in a poor light and as a result, see it as a victimless crime
