QuestionYour Q&A have given me great insight into how SIU works I had a situation where some of my friends decided to go in on an insurance fraud scheme against my advice but it just so happend that one of them actually got into a car accedent he had insurance but no job long story shot he decides to claim lost wages and now the case is with SIU. Now from what I gather SIU is just a fact finding party that helps claims decide wheather a claim is payable. Now I have 3 questions number one is if you file a claim and the company pays under fraudulent circumstances obviously you're in trouble but what happens if you just file and no award has been granted and fraud is detected? Secondly is there a dollar amount that matters with respect to the decision for SIU to turn the file over to the police? Lastly if SIU cannot varafy your employment will they just tell the claims department to forget about it and not pay the claim or will they continue the investigation and pursue charges and can you withdraw the claim once it reaches SIU?
Answer Hello Edward,
My first piece of advice is to stay away - very far away - from any insurance fraud scheme, either as a participant or as an observer. Insurance fraud is a felony.
Here are the answers to your specific questions.
If you file a fraudulent claim, even if the claim is not paid, this does not excuse your criminal actions. Insurance fraud is a crime of defrauding, or attempting to defraud, an insurance company. And just because the claim is not paid does not mean that SIU will not refer a suspicious claim to law enforcement for further investigation.
No, there is no dollar amount relative to an SIU referral - or at least there shouldn't be. Insurance fraud is what it is, a crime. States vary, but the criminal penalties can differ for fraud depending on the amount, but this should not be a concern for an SIU.
No, verification of employment is not necessarily relevant in an insurance claim. However, in a claim for wages, if there is no employment that would, of course, demonstrate criminal intent.
You can withdraw a claim at any time, however this by no means guarantees that a criminal investigation will not follow. In most states SIU has an obligation to refer suspicious claims to law enforcement regardless of payment status.
As you may suspect by now, authorities are very serious about insurance fraud. Beware also that if you in any way conspired with your friends, you could also be charged with a criminal offense. Probably a good time to look for better friends ...
Jane Pytel
http://InsuranceExpertAdvice.com
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
