Insurance Fraud Protection Act
What Does Insurance Fraud Protection Act Mean?
The Insurance Fraud Protection Act (IFPA), enacted in 1994, aims to prevent various forms of insurance fraud, including the overvaluation of land, property, or securities, as well as the embezzlement of funds, premiums, or money. It also addresses fraudulent activities related to the financial condition or solvency of businesses and seeks to eliminate fraud committed by individuals working in the insurance industry.
In addition to the IFPA, many states have enacted their own insurance fraud prevention acts, primarily designed to prevent fraud committed by insured individuals.
Insuranceopedia Explains Insurance Fraud Protection Act
When making a claim against an insurance policy, whether for medical treatment under a health insurance policy, damages under a car or home insurance policy, or any other type of claim, it is crucial to stick to the facts. There is no need to exaggerate or embellish the truth — a legitimate claim is valid on its own, and the insurer is obligated to reimburse the customer for covered losses or expenses. As the law states, you should not provide any false or misleading information that could affect the claim.
In simple terms: always be truthful with the adjuster.
