Clear Spring Property and Casualty Group Fraud Resource Center
Any person who – knowingly and with intent to defraud any insurance company or other person – files an application for insurance or statement of claim containing any materially false information or conceals (for the purpose of misleading) information concerning any fact material thereto, commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties.
Fraud Prevention is Everyone’s Concern
It is in the best interest of all parties to prevent fraud. While many workers’ compensation claims are legitimate, fraud continues to impact Pennsylvania businesses and insurance carriers.
The most obvious economic impact is borne by the insurance carriers who pay the fraudulent claims; however, those carriers are often compelled to pass the cost of the fraudulent claims on to policyholders in the form of increased premiums. Pennsylvania businesses will then pay higher rates for workers’ compensation coverage; thus making them less competitive in regional and national marketplaces. Higher workers’ compensation premium rates impede business profitability and business productivity. Accordingly, fraud hurts everyone.