What happens if you claim insurance fraud?
Referrals on suspected insurance fraud are handled by the California Department of Insurance (CDI) Enforcement Branch and may be prosecuted as a felony. The punishment for committing insurance fraud ranges from probation, fines, community service, restitution, confinement in county jail and/or state prison.
Is insurance fraud a big deal?
Insurance fraud costs U.S. consumers at least $80 billion every year, according to The Coalition Against Insurance Fraud (CAIF). CAIF also estimates that workers’ compensation insurance fraud alone costs insurers and employers $30 billion a year.
What does an SIU investigator do?
Special Investigative Unit (SIU) — unit or department within an insurance company involved in detecting and pursuing action against fraudulent activities on the part of insureds or claimants.
Do insurance companies investigate fraud?
All insurance companies have a Special Investigation Unit (SIU) or trained special fraud investigators. The main duties of an SIU is to detect, investigate and pursue action against fraudulent activities on the part of insureds or claimants.
What kind of crime is insurance fraud?
This particular fraud is a crime in all fifty states, and the majority of the states have established fraud bureaus to identify and investigate fraud incidents. In most states, fraudulent claims can be either a felony or a misdemeanor, depending on the nature and extent of the fraud committed.
What role does a SIU agent assigned to insurance loss play in the claims process?
The SIU has a team of private investigators to watch insurance fraud suspects and catch them in an incriminating activity. The SIU investigative process is extensive and follows every lead until they get to the bottom of the case. Your insurance claims adjuster will not refer your case to the SIU lightly.