- A form of insurance fraud where an individual, acting alone or with the help of a third party such as an insurance broker, defrauds an insurer in order to receive coverage by failing to disclose a pre-existing terminal illness or disease. Those who exploit insurance companies through clean sheeting often sell their insurance policies through a viatical settlement soon after being accepted. Also known as "concealment."
hiding pre-existing conditions, hiding health conditions, non-disclosure
Related Terms and Acronyms
- Collusion — Definition,
- A secret, deceitful agreement by two or more parties to defraud others.
- Exclusions — Definition,
- Situations, as listed in an insurance policy, where insurance companies are allowed to deny coverage to policyholders.
- Fidelity Bond — Definition,
- Insurance that protects a business from losses due to employee fraud, such as theft, forgery or fraudulent trading.
- Insurance Fraud — Definition,
- An illegal attempt by an individual or entity to receive insurance benefits that they would otherwise not be entitled to or for an insurance company to deny a legitimate insurance claim.
- Mis-selling — Definition,
- The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
- Money Laundering (ML) — Acronym,
- A process used by individuals to conceal illegally acquired funds by converting them into seemingly legitimate income. The term is generally associated with organized crime and those who need to legitimize illegally earned funds.
- Pre-existing Condition (PRE-X) — Acronym,
- A medical condition that's occurrence precedes the writing of an insurance policy.
- Unauthorized Insurance — Definition,
- A fraud where a scammer sells a victim an insurance policy that doesn't exist.
- Unfair Claims Practice — Definition,
- The act of an insurance company avoiding or reducing valid insurance claims.