Insurance 101 – Chapter 15 – Volume 14 – “Good Cause” Fraud

“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.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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