Fraud Unit - Frequently Asked Questions

Q: What is insurance fraud?

A: Insurance fraud occurs when individuals deceive an insurance company, agent or other person to try to obtain money to which they are not entitled. It happens when someone puts false information on an insurance application and when false or misleading information is given or important information is omitted in an insurance transaction or claim. Insurance fraud is committed by individuals from all walks of life. Nationwide, State Insurance Fraud Divisions have prosecuted doctors, lawyers, chiropractors, car salesmen, insurance agents and other persons in positions of trust. Also, anyone who seeks to benefit from insurance through making inflated or false claims of loss or injury. Insurance fraud can be "hard" or "soft."

What is the difference between insurance fraud and an insurance regulation violation?

A: Insurance fraud is a criminal act and a violation of insurance regulations is an administrative matter that may affect licensure.

Q: Who enforces insurance fraud in Alabama?

A: Enforcement of the insurance fraud laws is like any other law. The criminal act is investigated by a law enforcement agency and presented to a District Attorney for presentation in the criminal courts.

Q: Can any law enforcement agency enforce insurance fraud?

A: The main enforcement of this law was given to the Department of Insurance and the Insurance Fraud Unit created to investigate the crime. The law does not prohibit any law enforcement agency from investigating the alleged crime and presenting the results of the investigation to the District Attorney

Q: How do I report fraud?

A: Click the link to the right side of the page that says "Report Suspected Fraud" and fill out as much information as possible.

Q: If I have reported fraud in the past, how can I find out the status of my complaint?

A: To find the status of a case, contact the agency who is investigating the case.

Q: What happens to my information once I report it?

A: The information you provide to an investigative agency becomes the basis on which the investigation is based. The investigation will determine if the information was factual or false. The information remains with the investigating agency and becomes a part of the criminal investigation.

Q: What is the statute of Limitations on Insurance Fraud?

A: The statute of limitation on the crime of Insurance Fraud is two years from date of discovery of the fraud.