Sunday, December 12, 2010

Extra Living Expense Fraud

A report of alleged insurance fraud comes from Watertown, NY.  Timmy A. Barrows and Victoria J. Barrows of Constableville, NY were arrested last week on charges of insurance fraud.

The couple lost a home in a fire in September of 2009.  They had made an insurance claim for the damage through their insurance company, New York Central Mutual Insurance.  As part of the claim, they sought benefits available under the “additional living expense” section of the policy, and produced rent receipts for a residence they said they were renting.  The lease agreement was apparently false, and they had been living elsewhere during the period of repair, apparently pocketing the $17,360 in expense payments made by the insurance company.

Victoria Barrows was charged with second-degree criminal possession of a forged instrument, third-degree insurance fraud and first-degree falsifying business records.  Timmy Barrows has been charged with fifth-degree conspiracy.


Sunday, December 5, 2010

Compare Car Insurance Fraud

If we compare car insurance fraud to other types of fraud we find that according to the Insurance Research Council automobile insurance fraud added between $4.8 billion and $6.8 billion to auto claim payments in 2007.  This staggering figure pales in comparison to insurance fraud across the U.S., which costs the industry over $30 billion per year.

There are significant dangers involved with those who commit car insurance fraud.  If we compare car insurance fraud to medical insurance fraud, we find that the only real harm in medical cases is financial.  The chances of someone being injured are far less in this type of fraud.

If we compare car insurance fraud to homeowner’s insurance fraud we find that there are significant dangers in both, especially when you consider the danger to life and property caused by arson.  Incidentally, a large proportion of fraudulent claims involving automobiles involves arson as well.

Car insurance fraud that involves arson and staged accidents cause more issues than just financial damages.  This type of fraud places people in danger of being injured.  If you compare car insurance fraud to other types of insurance fraud, it will stand out as one that poses more dangers to the public than other types of insurance fraud.

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