Watch the full video at https://youtu.be/ZV51oJRxobg  For reasons known only to government agencies, some insist on categorizing fraud as both "hard" and "soft" fraud. By doing so, the state entities that categorize fraud make one type of fraud less heinous and less criminal than the other. Frauds, whether categorized as "soft" or "hard", are criminal and if a person is tried and convicted of fraud, both can be sent to prison for the same period.
The types of insurance fraud that some call "soft fraud" are found in all types of claims presented to an insurance company.
Soft fraud, sometimes called opportunity fraud, occurs when a policyholder or claim exaggerates a legitimate claim … According to the Insurance Board, soft fraud "is much more common than hard fraud … Because of the frequency of soft fraud, it adds more to the total cost of damages than gross fraud does. "
Soft fraud occurs when a policyholder exaggerates an otherwise legitimate claim or when a person applies for insurance and lies about certain terms or circumstances in order to lower the insurance premium.
The reality is that Soft Fraud is a criminal offense and a violation of an essential condition of the policy. This contributes to increased insurance costs. As a result of rising insurance costs, millions of Americans cannot afford adequate insurance coverage. You can not commit an innocent or partial fraud more than you can be partially dead. When fraud has been committed, the insurance contract is broken and can be annulled and the crime has been committed.
Mild fraud, on the other hand, usually involves legitimate losses that are exaggerated by the policyholder. For example, if a person is in a car accident and submits a claim for damages to their car insurance company but overestimates the severity of the damage to her car. The insured did not produce the accident or the underlying claim, but still committed soft fraud by not being completely truthful to the insurance company.
In New Jersey, whether the fraudulent act is soft or harsh, insurance fraud is a third-degree offense under New Jersey law. And if a person is accused of five or more frauds, the fee can be increased to a second degree crime. This means that even if the fraudster is convicted of the lower third degree charge, he or she can be sentenced to up to 18 months in prison and a $ 10,000 fine.
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to serving as an insurance consultant specializing in insurance coverage, insurance management, cheating and insurance fraud almost equally for insurance policyholders. He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and email@example.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 52 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insurance claims staff.
https://zalma.com/zalmas-insurance-fraud-letter-2/ Last read two issues of ZIFL here.
Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921  Read posts from Barry Zalma at https://parler.com/ profile / Zalma / post
Listen to the podcast: Zalma om försäkring https://anchor.fm/dashboard/episodesZalma om försäkring
Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg/  -claims-bibliotek /
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