Insurance fraud is a severe problem in New Jersey as well as all the other states in America. That is why the law strictly prohibits offering false statements to insurance companies to make financial gains. Additionally, it is illegal for insurance companies to deny an insurer a settlement if they are entitled to damages.
Unfortunately, some people are innocently accused of insurance fraud because of a misunderstanding or a genuine mistake. Read on to discover what the New Jersey Insurance Fraud Prevention Act says about such cases:
Insurance Fraud Prevention Act
According to the New Jersey revised statutes title 2c (2C:21-4.6), a person is guilty of insurance fraud if they knowingly make or cause to make a misleading statement or omit a material fact in writing or electronically in connection to making a claim, renewing an insurance policy, payments of insurance policy, or record of premium finance transaction.
The act also states that individuals are guilty of a second-degree crime if they knowingly commit five or more insurance fraud acts, including healthcare claims acts. Therefore, for an act to be classified as insurance fraud, the misleading information must have a connection to:
- A claim for payment or reimbursement according to the insurance policy
- An application to renew an existing policy or obtain a new one
- Payment following the insurance policy, whether paid or yet to be paid
- Affidavit or certification of a document used in premium or insurance finance transaction
What is the punishment for insurance fraud?
According to the New Jersey insurance fraud prevention act, violation of these laws results in a third-degree crime punishable by up to five years in prison or a fine not exceeding $15000. As discussed above, five or more acts of insurance fraud constitute a second-degree crime punishable by a 5 to 10 years jail term and a fine not exceeding $150000.
Elements of proof
Like any other criminal case, the prosecutor has the burden of proof to show the court beyond a reasonable doubt that the accused is guilty of the specific charges. There are three legal elements required in New Jersey to prove guilt. First, the accused must have been involved in one or more of the four categories discussed in this article. Second, the misleading statement must have material facts, and finally, the accused must be aware of the false information.
Defense for insurance fraud charges
The defense side must prove that the accused was not aware of the false information. Also, the defense team must prove wrong information does not connect to the payment or issuance of a new policy. The information does not have material gain. Another possible defense is when the statute of limitations has expired.
Working with a criminal defense attorney
An attorney has the necessary experience to help you reduce the charges at hand or have them dismissed entirely. Remember, it is possible to be accused due to a simple misunderstanding or a mistake when filing your claim. To talk to Bayonne Personal Injury Attorney, or get legal representation to protect your right and ensure you are offered a fair trial, call the offices at 201-829-3805 today.