The Insurance Fraud Division –branch of the Department of Insurance that investigates complaints of fraud or fraudulent insurance acts. It conducts background checks on persons applying for licenses and Certificate of Authority.
The division has the authority to investigate the affairs of any person who is believed to have violated the Insurance Code. The division may collect evidence, take sworn statements, and issue subpoenas. If the division finds that a violation of the criminal law has occurred, the case will be turned over to the Louisiana Department of Justice, or other appropriate authority for prosecution.
Insurance Fraud – making untrue statements or withholding material information on applications for insurance coverage and when making claims. This includes supplying false information or making untrue denials, in an attempt to receive coverage that is more favorable. Lower premiums or inflated benefits.
- It is insurance fraud to misrepresent the financial condition of an insurance company or solicit coverage for an insolvent insurance company.
- It is insurance fraud to conceal records and assets from the Department of Insurance.
- It is insurance fraud to prepare false statements either in support of making or denying a claim.
- It is insurance fraud to solicit or conspire with others to make such false statements.
- It is insurance fraud to cause or participant in a staged accident in an attempt to wrongfully collect insurance benefits from insurance companies.
- It is insurance fraud to file multiple claims for the same loss in an attempt to collect from more than one insurance company.
Note: These violations are felonies. They are punishable with fines up to five thousand ($5000.00) dollars and five (5) years incarcerated.
Any person involved in the insurance business, including producers, insurance companies and adjusters who become aware of insurance fraud must file a Form Notice with the fraud division within sixty (60) days of the time that fraud is first suspected.
Persons who make statements to the fraud division in the course of an investigation are immune from liability.
Background Checks – Conducted by the fraud division utilize the files of the Federal Bureau of Investigation (FBI) and the National Crime identification Center (NCIC). Applicants may be required to submit proof of identification.
Criminal information held by the fraud division is confidential and wrongful disclosure will result in a fine of five hundred ($500.00) dollars for the first violation and one thousand ($1000.00) dollars for each subsequent violation.
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