Insurance fraud: Everyone pays
Insurance fraud is an increasing problem in North Dakota and across the country. It's estimated that about 10% of all claims paid out by insurance companies are fraudulent.
In addition, one of the most prevalent types of insurance fraud is health insurance fraud, characterized sometimes by doctors charging for a more expensive procedure than the one that was actually performed.
It is important to remember that insurance fraud affects all of us--consumers and insurance companies alike. It is estimated that fraud costs consumers between $200 and $300 per year in increased home and auto insurance premiums.
For years, many people have believed that defrauding an insurance company is OK. Lots of people think that it's all right to pad a legitimate claim to recoup the deductible or make up for insurance premiums paid over the years when no claims were made.
Some of the latest consumer attitudes research, conducted by the Insurance Research Council (IRC), show that 33 percent of US adults think exaggerating an insurance claim is fine. The report was based on telephone and in-person interviews of 3,504 U.S. adult men and women, conducted largely by the Roper polling organization.
The bottom-line is that fraud is not fine--it's illegal and punishable by law. In North Dakota, insurance fraud is Class C Felony if the value of any property or services retained exceeds $5,000 and a Class A misdemeanor in all other cases. It may be punishable by up to five years in prison and up to $5,000 in fines and may include restitution and court costs.
If you suspect that a fraudulent insurance act is occuring, or has occured, please contact the Department at:
insurance@nd.gov
State Capitol, fifth floor
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
701.328.2440
701.328.4880 fax
800.247.0560 toll free
800.366.6888 TTY line
If you are an insurer or a producer/agent, suspect fraud, and are ready to report it, please click here for the form you will need.
If you need help completing the form, here are directions.
Report fraud online
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