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How Insurance Fraud Affects Consumers and Insurance Companies

Insurance Fraud 

Did you know that insurance fraud is estimated at over a hundred billion dollars a year? Insurance fraud is
when an insurance company, adjuster, agent, or consumer deliberately commits fraud and deceives to
obtain an illegitimate gain.

Insurance fraud falls into many different categories. Individuals can commit fraud against insurance
companies or against consumers. It costs insurance companies, threatens their competitiveness, and is
damaging to consumers.

Automobile insurance is believed to be the most affected by fraud. Worker’s compensation committed by
both employees and employers alike, health insurance and medical fraud can be quite costly.

Fraud Types

It is essential to work with a reputable insurance company and agent since there are fake insurance
companies and dishonest insurance agents who collect premiums for fraudulent policies which defraud
consumers because these policies cannot pay claims.

There are fake insurance companies selling auto, homeowners, renters, life, disability, prescription drug,
and long-term care policies. Consumers may consider these ‘companies’ because their policies are
priced significantly lower than reputable insurance companies can offer. They provide consumers with
documents that look authentic, but the policies do not adhere to state insurance regulations.

Be wary if an agent wants you to sign a policy on the spot, offers deeply discounted premiums, does not
provide you an insurance card or copy of your policy, or has a phone number listed that is not working or
one in which you can’t contact a live person.

Consumers can contact their state insurance department to ask questions before purchasing an illegal
policy if they suspect illegal activity. State insurance departments have criminal investigators who work
law enforcement to prosecute insurance fraud.

Consumers who stage accidents, injury, theft or other losses that would be covered under their insurance
policy or omit or provide false information on their claims are also guilty of insurance fraud.

Fraud is serious and fighting fraud is an important aspect of state regulation. If you believe you are a
victim of fraud, fill out a report electronically through the NAIC uniform fraud reporting system. The NAIC
will investigate the claims and will make arrests if appropriate. The NAIC antifraud task force’s mission is
to monitor and investigate fraud claims both by and against consumers.

The Gordon Agency

Insurance fraud is serious. It impacts the premiums homeowners pay. The best way to ensure that your
policy is legitimate is to consult with The Gordon Agency. Michael Gordon is an experienced insurance
agent who keeps up with the latest insurance trends and will ensure you have the coverage you may
need in a legitimate policy.

Insurance Agent Boca Raton

This is the home of Florida’s Insurance Professionals. We are a multi-line independent agency that provides insurance solutions for both personal, and commercial lines. Combining decades of relationship building with motivated licensed insurance agents to provide coverage options for all of your insurance needs.

Our team of agents relies on our education, integrity, experience, and attention to detail to accurately assess each opportunity and to offer the optimal solutions for all of our clients. We are dedicated to matching the right product for every situation, always at the best price available. Call us at 561-988-3330, visit our website or paste our address in your browser https://tgafl.com/.


The Gordon Agency
2101 NW Corporate Blvd Ste. 211
Boca Raton, FL 33431


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