Insurance fraud is the willful abuse of an insurance policy for financial gain. Fraud is an intentional act and is illegal. It includes any deliberate deception perpetrated against an insurance company and any deliberate deception committed by an insurance company or its representatives.
The Division of Insurance Fraud investigates all instances of alleged or suspected fraud committed by or upon insurance agents, brokers and companies. The Division assists local, state and federal authorities in fraud investigations, as necessary, and cooperates with industry associations and organizations in the investigation and prevention of fraud.
Fraud is the second most costly white-collar crime in America behind tax evasion and it costs Americans billions of dollars each year. In 2008, the Coalition Against Insurance Fraud estimated that insurance fraud costs Americans at least $80 billion annually, nearly $950 a year per family.