Insurance Fraud

Better Essays
Topics: Insurance, Fraud
Thalita Correa
ID# 12260002
ACCT363
Prof. Robert I. Elan

Insurance Fraud

The early warning signs of fraud are, usually, always ignored. There are warning signs for every type of fraud out there. To understand the warning signs of fraud, we must first know what fraud is. Fraud is the intent to trick someone or lie to someone in order to receive financial gain. This definition varies depending of the type of fraud used, but the person committing the fraud is always looking for financial gain. There are many types of fraud out there. You have internet fraud, mortgage fraud, loan fraud, tax fraud, embezzlement, forgery, insurance fraud, and marriage fraud. These are only a few types of fraud. There are many more types of fraud out there and new types of fraud are being committed every day. This paper will focus on insurance fraud in particular. Insurance fraud will lead into a discussion of what the fraud is, how it happens, what are the warning signs of the fraud, and what you can do to protect yourself.

Chinese and Babylonian traders practiced the first methods of transferring or distributing risk as long ago. Chinese merchants travelling treacherous river rapids would redistribute their wares across many containers to prevent loss due to any singe containers spoilage. The Babylonians created a system that recorded in the famous code of Hammurabi. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender 's guarantee to cancel the loan should the shipment be stolen.
Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in the beginning of the Persian year, the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was



Bibliography: "Insurance Fraud." 123HelpMe.com. 03 Apr 2013     <http://www.123HelpMe.com/view.asp?id=71683>. “Regulatory guidelines” insurancefraud.org. 03 Apr 2013 <http://www.insurancefraud.org/regulatory-guidelines.htm - .UVxbU443Q21> “Superior Insurance Services” firstmerchants.com. 15 Mar 2013 <https://www.firstmerchants.com/insurance>

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