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Home > Consumers > Fraud

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.

North Dakota fraud referral statistics
  2009 2010 2011 2012 2013 2014
Insurance fraud referrals received 48 94 120 93 158 189
Cases still under investigation 11 51 79 151 78 72
Losses due to fraud* $20.2M** $1.06M $1.99M $710,104 $321,380 $831,466

*This number reflects only those amounts that were reported by insurance companies;
not all companies report the claim amount with their referral.
**$20 million of this amount is from one case that is being investigated by a federal agency.


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 $400 and $700 per year in increased home and auto insurance premiums. (FBI)

Research conducted by the Insurance Research Council in 2013 showed that 24 percent of U.S. adults agree it is acceptable to increase an insurance claim by a small amount to make up for the required deductible.

The bottom line is that fraud is not fine--it's illegal and punishable by law. In North Dakota, insurance fraud is a Class A felony if the value of any property or services retained is above $50,000; a Class B felony at $10,001 to $50,000; and a Class C felony for $1,000-$10,000. Insurance fraud is a Class A misdemeanor in all other cases.

If you suspect that a fraudulent insurance act is occurring, or has occurred, please contact the Department at:

600 E. Boulevard Ave.
Bismarck, ND 58505-0320

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 use this form.

If you need help completing the form, here are directions.

Report fraud online


Fraud Reporting Form SFN 58333

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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