May 9, 2017

Summary: When insurance fraud is mentioned, many people think of claims fraud. However fraud can begin before the policy is issued, on the application, and affects property as well as liability coverage. This is common enough that most applications state that misrepresentations on the application can void the policy. Many people commit underwriting fraud without even knowing it is fraud—they are just fudging information to get a lower rate. Others intentionally plan to defraud the company so they can cover a loss that already happened or have coverage for later. Some may even plan to get coverage in order to commit fraud later and file a claim.

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