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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Unfair Claims Practice


Synonyms:bad faith insurance, fraudulent claims practice, insurance fraud
Filed Under: insurance
Tags: insurance
 

Definition of unfair claims practice

unfair claims practice
1. When an insurer unfairly, and sometime fraudulently, tries to avoid or reduce legitimate insurance claims.

Related Terms and Acronyms:

  • clean sheeting   A type of insurance fraud where an individual deliberately fails to disclose a pre-existing condition in order to receive coverage, sometimes with the help of an insurance broker.
  • collusion   A secret, deceitful agreement by two or more parties to defraud others.
  • fake claim   An insurance claim made fraudulently.
  • impaired insurer   An insurance company that is financially insolvent or illiquid and in risk of being unable to pay insurance claims.
  • insurance claim   An application for benefits made by an insurance policyholder after an insured event.
  • insurance fraud   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.
  • insurance policy   A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • loss adjustment expenses (LAE)   Expenses incurred by loss adjusters when they investigate and settle claims.
  • mis-selling   The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
  • unauthorized insurance   A fraud where a scammer sells a victim an insurance policy that doesn't exist.

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