Insurance Fraud

 

 

This section includes:

• Long-Term Insurance Fraud

Insurance fraud affects all facets of the insurance industry: health insurance fraud, auto insurance fraud, life insurance fraud, etc.

Insurance fraud occurs when insurance companies lie or conceal in order to avoid payment for a claim that otherwise would be paid. If a policyholder has reason to believe that they are being defrauded by their insurance provider, they can employ the services of an insurance fraud lawyer. Insurance fraud lawyers investigate the insurance company itself by using the contracted policy agreement as their guide. Insurance contracts often contain confusing technical jargon geared towards providing insurers with the greatest amount of claim flexibility.

Hurricane Fraud

Most hurricane fraud revolves around claims related to the three biggest storms of the 2005 hurricane season; Hurricane Rita fraud, Hurricane Katrina fraud and Hurricane Wilma fraud. The scale of the damages faced during the 2005 hurricane season is without comparison. In an effort to avoid paying tens of millions of dollars in claims, a number of insurance companies have decided to defraud policyholders by lying and concealing.

In the wake of the hurricanes, victims sought to pick up the pieces (quite literally) by beginning to rebuild their homes and their lives. Confident that homeowners' insurance would cover the financial aspect of their reconstruction efforts, hurricane victims contacted their respective insurance companies in order to file claims. Unfortunately, a large number of insurance companies refused to approve most claims on the basis that damages were caused by flooding (an excluded peril on almost all homeowners' insurance policies) as opposed to hurricane winds (an included peril on all homeowners' insurance policies).

Displaced hurricane victims were reporting cases of insurance fraud to such an extent that a coalition of charitable organizations decided to aid in the logging of each and every complaint. The group, Americans for Insurance Reform (AIR), set up a toll-free hotline through which victims of hurricane fraud could register their grievances. Some of the complaints documented by AIR include:

• Insurance company misinformation tactics
• Refusal to send insurance adjusters to certain locations
• Slow rate of insurance company response

When taken into consideration that the 2005 calendar year proved to be one of the most profitable for the property / casualty insurance industry, the actions of the insurance companies are particularly egregious. They are generating tremendous profits from the premiums paid by policyholders, but withholding payments to these consumers when they were needed most.

Finding an Insurance Fraud Lawyer

When insurance companies disapprove a claim under fraudulent pretences, it is up to insurance fraud lawyers to fight for the rights of policyholders. Located in the south-easternmost part of the United States, Florida received much of the damage associated with the 2005 hurricane season. As such, a great deal of hurricane fraud has been reported throughout some of the areas that were hit the hardest. The law offices of Aylstock, Witkin, Kreis & Overholtz have a great deal of experience fighting for the rights of Florida's citizens when it comes to insurance fraud.