The Nebraska Insurance Fraud Prevention Division of the state’s insurance department announced it was recently notified of an alleged fictitious vehicle damage fraud scheme involving individuals from New Jersey and New York.
The scheme allegedly works as follows: A “liability only” automobile policy is obtained and a claim is filed for under $10,000 shortly thereafter. The insured contacts the insurance company stating that he/she was involved in an accident, it was his/her fault, and the other party to the accident will be contacting the insurance company. The “accidents” occur on the East Coast, typically in New Jersey or New York.
Neither the insured nor claimant will meet with a claim representative citing excuses such as funeral, employment, etc. The claimant will make the vehicle available for inspection by the insurance company adjuster at a public location. The insured’s address appears to be an apartment in Nebraska, when in fact the insured has never lived in the apartment.
The department stated that this is similar to a scheme investigated by the Iowa Insurance Fraud Bureau in 1999 involving more than 50 insurance companies with actual or potential losses of $400,000.
Was this article valuable?
Here are more articles you may enjoy.
Aon Adds to List of Brokers Suing Howden US for Alleged Poaching, Theft 
Florida Jury Returns $779M Verdict for Family of Security Guard Killed at Gambling Cafe 
Court Awards $32 Million Over Premature Baby’s Death at Yale Hospital 
Fifth La Niña in Six Years to Disrupt Crops and Supply Chains 
