Columbia Insurance Fraud Lawyer

When an insurance company, agent, adjuster, or consumer misrepresents a fact or makes a false statement for an illegal gain, this is insurance fraud. With the issue becoming an increasing concern within the Palmetto State, the South Carolina Department of Insurance has created a specialized task force to prosecute offenders.

If you are facing accusations of insurance fraud, it is vital that you protect your rights. Even if you think your situation is hopeless, do not hesitate to reach out to me.

Common Examples of Insurance Fraud

Insurance fraud can take a variety of forms, including:

Exaggerating Losses

Frequently seen in natural disaster situations, a policyholder may inflate the amount of property damage sustained to get a higher insurance payout. Also known as “padding” a claim, inflating a claim is unlawful and costs the average American household over $1,000 in premiums every year.

Staging an Accident

Frequently seen in motor vehicle claims, another driver may cause a crash in an attempt to make another driver appear liable.

Falsifying the Date of an Accident

Policyholders may falsify the date that an accident occurred to get insurance to cover the damage. For instance, if you are filing a homeowner’s claim following a tornado, most insurance companies require you to submit a proof of loss statement within 60 days.

Policyholders who miss that timeline may be tempted to fudge the date the damage occurred.

Premium Diversion

Generally, premium diversion involves an insurance agent not sending premiums to the underwriter, instead keeping the money for their own personal use.

Fee Churning

Largely attributed to insurance agents, it is the process of taking repeated commissions from one premium through reinsurance agreements. After these commissions have been taken, there is no money left to pay claims.

Penalties for Insurance Fraud in South Carolina

The circumstances behind your incident will determine the amount of jail time and fines imposed. South Carolina law imposes the following punishments for anyone who presents a false claim for payment:

Incarceration

If the amount of the claim is $2,000-$10,000, you could be sentenced to five years in jail. If the amount of the claim is $10,000 or more, you could be sentenced to 10 years in jail.

Fines

If the amount of the claim is between $2,000-$10,000, fines will be imposed at the court’s discretion. If the claim is $10,000 or more, you could potentially be fined $5,000;

Restitution

If there was a victim of the fraudulent scheme, you could be asked to reimburse them for their losses.

Civil Asset Forfeiture

State law enforcement will seize any property that was gained as a result of the fraud.

Speak with Me Today

Insurance fraud can take a variety of forms. There are a number of defenses that may be raised, and I will know which defenses apply in your case. If you have been charged for insurance fraud or are under investigation, there is no time to waste. To learn more, contact me by filling out the online form or by calling 803-779-3363.