As with other states, Kentucky has laws protecting the insurance system from fraudulent activity. Individuals who commit fraud while filing claims or even in the process of securing insurance can be convicted of a felony in certain circumstances.
In all insurance fraud cases, jail and hefty fines are a real possibility.
Insurance fraud is not just a charge reserved for those who stage car accidents or who burn their own properties down in order to collect insurance proceeds.
While these are more flagrant cases of fraud, a person who merely overstated how much their claim was worth or who told what they thought was a white lie or omitted something important on their insurance application can face an allegation of insurance fraud. By way of example, lying about one's health on a life insurance application or padding a claim by trying to add prior damage to one's home or automobile are examples of insurance fraud.
Individuals involved in the insurance business, like agents, can also find themselves accused of fraud for what may seem like mistakes, such as failing to procure insurance for a client who has provided funds for doing so.
In short, insurance fraud is not something that investigators, law enforcement officers, and prosecutors take lightly, and it should not be taken lightly by those who are accused of it either. In some cases, due to a lapse of judgment or some hardships in life, a Kentucky resident may have committed insurance fraud and will need to work to get past the mistake and rebuild his or her life.
On the other hand, not understanding the system, making on an honest mistake or even being a little careless does not amount to insurance fraud. Still, a person can find himself or herself accused and, in such cases, should strongly consider seeking the advice and assistance of an experienced criminal law attorney.