Explaining the False Swearing Defense to an Insurance Claim
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FALSE SWEARING
\\nhttps://zalma.com/blog
\\nIn common language the \\u201cfalse swearing\\u201d provision of an insurance policy merely means that if the insured lies under oath the policy is void whether the lie is in a proof of loss or at an examination under oath. In Texas and Oklahoma, false swearing is explained this way:
\\nWhere an insured knowingly and willfully overestimates the value of property destroyed or damaged, the policy is voided and the insured\\u2019s right to recover is defeated.
\\nThe professional claims person is an important part of the insurer\\u2019s defense to litigation against insurers for breach of contract and to detect and defeat attempts at insurance fraud.
\\nA staff of claims professionals dedicated to excellence in claims handling are a profit center for an insurance company. Experience establishes that claims professionals resolve more claims for less money without the need for either party to involve counsel. A happy insured or claimant satisfied with the results of his or her claim will never sue the insurer.
\\nIncompetent or inadequate claims personnel force insureds and claimants to lawyers. Every study performed on claims establish that claims with an insured or claimant represented by counsel cost more than those where counsel is not involved.
\\nExcellence in Claims Handling
\\nExcellence in claims handling is a program that can help insurers avoid charges of bad faith in both first and third party claims.
\\nProposal
\\nInsurance fraud is not a local problem. It is a depletion of the wealth of the entire country. The lawyer for the Department of Insurance of each state is the State Attorney General. A special unit could be established in the office of the Attorney General, funded with the monies taken from the insurance industry to support the war against insurance fraud. This unit should be given a simple mandate: File and prosecute every insurance fraud brought to the unit by the Fraud Division that has a better than 50% chance of success
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