“Good Cause” Fraud
Many people, whether in the insurance industry or outside it, believe there are good causes for committing insurance fraud that should not be punished. Judges, jurors and administrative law courts seem to allow perpetrators of insurance fraud to avoid prosecution or claim denial if convinced that the fraud was committed for a good cause. So-called “good cause” fraud is often called a “benign” or “soft” fraud. It is no less fraud. It is still a crime. It is no less a tort. It is a breach of a material condition of an insurance policy. The triers of fact simply refuse to punish the perpetrators.
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