Insurance fraud refers to any act committed with the intent to fraudulently obtain payment from an insurer. It encompasses a wide range of illicit activities, from exaggerated claims to the fabrication of accidents or damage. Insurance fraud can be committed by applicants, policyholders, third-party claimants, or professionals who provide services to claimants. Common examples include inflating genuine claims, staging accidents, filing claims for injuries or damage that never occurred, and presenting false information at the time of application to secure a lower premium. Insurance fraud is a serious crime that can have significant repercussions, including legal penalties, and it contributes to higher insurance costs for honest policyholders as insurance companies often pass the cost of fraudulent claims onto their customers in the form of higher premiums.
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