Insurance 101 – Chapter 16 Volume 4 – Reliance Required to Prove Fraud

Reliance Required to Prove Fraud

Another key element needed to prove the defense of fraud is reliance. The general rule is that an insurer need not suffer detriment or rely on an insured’s fraud before being  allowed to declare a policy void.  ‘If the insurer is deceived and could incur detriment if the deceit is successful, this is sufficient to establish the fraud defense. There is no need for the  insurance company to wait to be damaged when the deceit itself is the proscribed activity, and the stated penalty is forfeiture of all benefits.

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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