Unfair Claims Practice
Definition
- When an insurer unfairly, and sometime fraudulently, tries to avoid or reduce legitimate insurance claims.
Synonyms
insurance fraud, fraudulent claims practice, bad faith insurance
Related Terms and Acronyms
- Claims Adjuster — Definition,
- An individual who ascertains the insurer's liability after an insurance claim has been made.
- Clean Sheeting — Definition,
- A type of insurance fraud where an individual deliberately fails to disclose a pre-existing condition in order to receive coverage, sometimes with the help of an insurance broker.
- Collusion — Definition,
- A secret, deceitful agreement by two or more parties to defraud others.
- Fake Claim — Definition,
- An insurance claim made fraudulently.
- Impaired Insurer — Definition,
- An insurance company that is financially insolvent or illiquid and in risk of being unable to pay insurance claims.
- Insurance Claim — Definition,
- An application for benefits made by an insurance policyholder after an insured event.
- Insurance Fraud — Definition,
- An illegal attempt by an individual or entity to receive insurance benefits that they would otherwise not be entitled to or for an insurance company to deny a legitimate insurance claim.
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Loss Adjustment Expenses (LAE) — Acronym,
- Expenses incurred by loss adjusters when they investigate and settle claims.
- Mis-selling — Definition,
- The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
- Unauthorized Insurance — Definition,
- A fraud where a scammer sells a victim an insurance policy that doesn't exist.
