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Published: Sept. 8, 2021, 3:51 p.m.

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Insurance Fraud Perpetrators are Creative We All Do it Fraud  

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https://zalma.com/blog

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The California Court of Appeal, in Cassim v. Allstate Insurance Co., 94  P.3d 513, 33 Cal.4th 780, 16 Cal. Rptr.3d 374 (Cal. 07/29/2004), was  faced with a trial verdict of bad faith against an insurer that it found  was based upon prejudicial final argument leading the jury to believe  that \\u201csome fraud\\u201d is permissible  

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The law in California, as it should be everywhere, is that an insured  cannot commit a little fraud. You either commit fraud or you do not. You  cannot commit a little fraud any more than you can be a little dead.  If you commit fraud, regardless of the bad faith of the insurer, you  recover nothing.  

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Hard Fraud  

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The following types of fraud are premeditated and intentionally  committed. 

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Those who differentiate between types of fraud would place  these in the category of \\u201chard fraud,\\u201d which is considered more  egregious than \\u201csoft fraud\\u201d since it is performed with malice  aforethought.  Hard fraud takes planning, scheming, and even someone on the inside to  help you get money from an insurance company. An example of hard fraud  would be getting into an accident on purpose so that you can claim the  insurance money. This example is fairly prevalent lately; someone hits  the brakes so that the person behind them can\\u2019t stop quickly enough.  Another really severe form of hard fraud would be faking your own death  or murder for the life insurance death benefit.  T

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he Staged Loss  

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A theft where the owner contracts with an intermediary to dispose of a  vehicle. The owner \\u2018gives up\\u2019 the vehicle and then reports it to the  insurer as stolen.The person to whom the vehicle is given up will pass  it to a salvor who breaks it up into its component parts and sells the  parts (a \\u201cchop shop.\\u201d) 

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Staged theft also includes cases where the  insured ships an auto to Mexico, China, Vietnam, or other foreign  country where it is sold after which the insured makes claim reporting  the vehicle stolen. All staged thefts are planned and performed for the  sole purpose of defrauding an insurer.  Abandonment  The owner abandons a vehicle on a city street or in a parking lot,  creating a morale hazard. The insured will report the vehicle stolen and  attempt to collect before it is recovered.  Dumping  When the owner disposes of a vehicle by dumping it into a lake or other  body of water.  Cars have even been found buried underground and some  lakes have been found to have more than 50 cars underwater.  

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\\xa9 2021 \\u2013 Barry Zalma

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