Insurance Fraud Protection Act
What Does Insurance Fraud Protection Act Mean?
The Insurance Fraud Protection Act (IFPA) was enacted in 1994 and is meant, among other things, to prevent overvaluation of land, property, or securities; to prevent embezzlement of moneys, funds or premiums. It also prevents deceptions concerning the financial condition or solvency of businesses and generally eliminates fraud committed by people who work in the insurance industry.
Numerous states also have their own insurance fraud prevention acts. These laws have been enacted primarily to prevent insurance fraud by insureds.
Insuranceopedia Explains Insurance Fraud Protection Act
As someone who might be looking to make a claim against an insurance policy, whether for medical treatment under a health insurance policy, damages suffered under a car or home insurance policy, or any claim against any insurance policy that's held, it’s important to only stick to the facts. There's no need to stretch the truth or embellish the facts — a valid claim is a valid claim and the insurer must reimburse the customer for any loss or expense that is covered. As the law states: Do NOT make any statement that "contains any false or misleading information concerning any fact or thing material to the claim".
In other words: just tell the adjuster the truth.
