What is insurance fraud?
Insurance fraud is a white-collar crime that costs U.S. consumers approximately $79 billion each year, or $900 per year, per family. (Coalition Against Insurance Fraud 2001) In the last decade, insurance fraud has become a sophisticated, professional way for individuals to collect large sums of money from insurance companies. These companies, in turn, must raise their rates to compensate for these losses. As a result, insurance fraud affects everyone.

Insurance fraud is a deliberate act committed by or against insurance companies for financial gain. “Hard” insurance fraud is an intentional act to create an accident, injury or incident that would be covered under an insurance policy. “Soft” insurance fraud occurs when a policyholder exaggerates a claim or provides false, incomplete or missing information to the insurance company during the application process to receive a lower insurance premium. Insurance fraud can be found in all types of insurance — property-casualty, life and medical.

What can be done about it?
States and insurance companies are joining forces with consumers to combat this costly crime. Some states have created insurance fraud units that have the same authority as law enforcement. Insurance companies, including Penn National Insurance, have internal Special Investigative Units to detect and investigate claims that appear suspicious.

If you suspect a case of insurance fraud, don’t let it pass. Most states have ways for you to make an anonymous report of suspected fraud.

What you can do to help fight insurance fraud
Schemes to commit insurance fraud can be sophisticated or simple. Here are some tips to help you avoid being a victim of this crime:

• Don’t buy insurance from a stranger at your door or by telephone.
• If the premium quoted to you sounds too good to be true, it probably is.
• Check to see how the insurer is rated by agencies such as Standard & Poor’s, A.M. Best Company, or Moody’s Investor’s Service.
• Be sure you have a written policy in hand within 45 days of paying your first premium.
• Never sign blank insurance claims forms.
• Watch for double-billing or unexplained charges for any services you receive as part of an insurance claim.
• Get as much information as possible at the scene of an accident.

If you suspect you may already be a victim of insurance fraud, contact your Penn National Insurance claims adjuster immediately or call our fraud tip hotline at 800.377.4764 x2499.

Our commitment to combating insurance fraud
Penn National Insurance is recognized as a leader in fraud detection and investigation. As fraud perpetrators change their methods, our Special Investigation Unit changes how we detect and investigate fraud. Our professionally trained staff members are experts in fraud, arson and reconstruction who work closely with state insurance fraud bureaus, law enforcement, attorneys general, the National Insurance Crime Bureau, district attorneys and insurance industry trade organizations.

Penn National Insurance fraud tip hotline: 800.388.4764 x2499
This hotline is available around the clock for reporting suspicious or fraudulent insurance activity. Callers may remain anonymous, and we will keep all information strictly confidential. One of our staff investigators will handle all calls and will investigate them as needed.

Arson awareness program
Arson is illegal, expensive and deadly. In certain situations, Penn National Insurance will work with state and local Crimestoppers Programs in funding a reward. This program is operated by your local Crimestoppers Organization.

Want to know more?
For more information on insurance fraud, visit the Coalition Against Insurance Fraud at www.insurancefraud.org or Pennsylvania’s Insurance Fraud Prevention Authority at www.helpstopfraud.org.