- A fraudulently made insurance claim. In most cases where a fake claim is identified, a policyholder will exaggerate a legitimate claim, but it is not uncommon for someone to completely fabricate a fake claim for financial gain.
fraudulent claim, charge, statement, false claim
Related Terms and Acronyms
- Claim — Definition,
- A creditor's assertion of a right to payment from a debtor or the debtor's property.
- Claims Adjuster — Definition,
- An individual who ascertains the insurer's liability after an insurance claim has been made.
- Insurance Claim — Definition,
- An application for benefits made by an insurance policyholder after an insured event.
- 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.
- Loss Adjustment Expenses (LAE) — Acronym,
- Expenses incurred by loss adjusters when they investigate and settle claims.
- Unfair Claims Practice — Definition,
- The act of an insurance company avoiding or reducing valid insurance claims.