Insurance fraud or false insurance claims are insurance claims filed with the intent to defraud an insurance provider. Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. ... In the broadest sense, a fraud is a deception made for personal gain, although it has a more specific legal meaning, the exact details varying between jurisdictions. ...

In the United States insurance fraud is estimated to cost US$875 per person per year with The Coalition Against Insurance Fraud estimating the loss to be $80 billion per year and Medicare estimating fraud in its system costs the government $179 billion per year. The United States dollar is the official currency of the United States. ... The Coalition Against Insurance Fraud is a national alliance of consumers, insurers and government agencies dedicated to combating all forms of insurance fraud through legislative advocacy and consumer education. ...

Insurance fraud hurts the average person in two ways. First, all fraud costs, including losses, investigations, etc.. are paid for by the insured through higher premiums, or, in the case of government insurance like Medicare, in higher taxes. Second, if a particular individual is the target for the fraud, they have costs such as deductible payments, loss of property use, etc., as well as higher premiums from the claim loss and the potential for denial of future coverage.

Some memorable examples of insurance fraud include the following:

• Former British Government minister John Stonehouse went missing in 1974 from a beach in Miami. He was discovered living under an assumed name in Australia.
• Derek Nicholson and Nikole Nagle were accused of attempting to defraud a life insurance company for $1 million after Mr Nicholson apparently went missing in New Jersey in July 2003 and Ms Nagle reported him missing and made a claim on the policy.

John Stonehouse (1926 - 1988) was a British politician and minister under Harold Wilson. ... It has been suggested that Life assurance be merged into this article or section. ... State nickname: The Garden State Other U.S. States Capital Trenton Largest city Newark Governor Richard Codey (D) Official languages None defined Area 22,608 km² (47th)  - Land 19,231 km²  - Water 3,378 km² (14. ...

External links

• BBC article
• http://www.insurancefraud.org