NCJ Number
32507
Date Published
1975
Length
18 pages
Annotation
COMBINING CASE EXAMPLES WITH A COMPREHENSIVE ANALYSIS, THIS ARTICLE EXAMINES THE VARIOUS FORMS OF INSURANCE FRAUD COMMONLY FOUND IN EUROPE AND DISCUSSES POSSIBLE MODIFICATIONS OF WEST GERMAN INSURANCE FRAUD LAWS.
Abstract
FOUR CATEGORIES OF INSURANCE FRAUD ACTIVITY ARE FIRST IDENTIFIED: THE DRAWING UP OF FRAUDULENT CONTRACTS; THE FRAUDULENT EXPLOITATION OF AN INSURANCE POLICY; FRAUDULENT COUNTERFEITING OF A CLAIM UNDER AN INSURANCE POLICY; AND FRAUDULENTLY CONTRIVING A CLAIM UNDER AN INSURANCE POLICY. THE FRAUDULENT DRAWING UP OF CONTRACTS OCCURS IN ALL BRANCHES OF THE INSURANCE BUSINESS; HOWEVER, IN JUDICIAL PRACTICE, RELEVANT CASES OF FRAUD IN THIS AREA ARE RARE, SINCE MOST OF THEM ARE SETTLED WITHIN THE INSURANCE COMPANY. AS THE OTHER THREE TYPES OF INSURANCE FRAUD CONSTITUTE A SIGNIFICANT LEGAL PROBLEM, THESE ARE DISCUSSED IN DETAIL. EXAMPLES OF THESE FRAUDULENT ACTIVITIES ARE PROVIDED FOR FIRE INSURANCE, LIFE INSURANCE, ACCIDENT INSURANCE, BURGLARY AND THEFT INSURANCE, AND AUTOMOBILE INSURANCE. AMONG THE CASE TYPES USED TO ILLUSTRATE THESE FRAUDS ARE ARSON, MURDER TO OBTAIN LIFE INSURANCE PAYMENTS, EXAGGERATION OF THEFT LOSSES ON LEGITIMATE INSURANCE CLAIMS, FAKING OF CAR ACCIDENTS, AND INTENTIONAL INVOLVEMENT IN CAR COLLISIONS FOR THE PURPOSE OF COLLECTING INSURANCE PAYMENTS. TURNING TO THE CRIMINAL LAWS DEALING WITH INSURANCE FRAUD, THE AUTHOR NOTES THAT PRESENT WEST GERMAN REGULATIONS COVERING INSURANCE ABUSE ARE INADEQUATE. THE PROPOSED REFORMS OF THIS LAW ARE EXAMINED, AND THE AUTHOR CONCLUDES THAT WHILE A REFORM CREATING A CONCEPT OF AN OFFENSE IN THE FIELD OF INSURANCE ABUSE MAY BE POSSIBLE, NO NEED FOR SUCH SPECIAL LEGISLATION EXISTS SINCE THE GENERAL OFFENSE OF FRAUD MAY BE APPLIED. FINALLY, THE AUTHOR CALLS FOR MORE PUBLIC EDUCATION AND OPENNESS ON THE PART OF INSURANCE COMPANIES, CLAIMING THAT KNOWLEDGE OF THE IMPACT OF INSURANCE FRAUD AND THE HONESTY OF INSURANCE PROCEDURES MAY DISCOURAGE OCCASIONAL INSURANCE FRAUD OFFENDERS....DMC