Insurance Fraud Punishment in Missouri

Insurance fraud can lead to serious consequences, both legally and financially. Whether it’s exaggerating a claim or creating a completely false one, the insurance fraud punishment depends on the severity and intent behind the crime. At Burger Law, we understand that legal jargon can feel overwhelming, so we’re here to simplify things. If you have concerns about insurance fraud in St. Louis, keep reading for key insights.

What is considered an insurance fraud in St. Louis?

Insurance fraud occurs when someone intentionally deceives an insurance provider to gain financial benefits they’re not entitled to. In Missouri, this includes falsifying claims, lying about property damage, or staging accidents. Fraudulent activities can involve individuals, organized groups, or companies attempting to exploit insurance systems.

Missouri law defines and penalizes these actions to ensure fairness and deter unethical behavior. Understanding what constitutes fraud can protect both policyholders and providers from unnecessary risks.

Types of insurance frauds

Frauds come in many forms. Some are minor exaggerations, while others involve intricate schemes. Here’s a breakdown of the two most common types:

Soft frauds

Soft frauds happen when individuals slightly embellish legitimate claims to receive a higher payout. Examples include exaggerating injuries after an accident or inflating the value of stolen items. While some might consider this harmless, soft fraud is still illegal and can lead to penalties.

Hard frauds

Hard frauds are deliberate attempts to fabricate events for financial gain. This could involve staging car accidents, submitting false injury claims, or filing for damages on a nonexistent property. Complex fraud is a severe offense and is often classified as a felony.

Is insurance fraud a felony?

In Missouri, insurance fraud can indeed be charged as a felony if the amount of fraud involved is over a certain amount or if there are other aggravating factors in the insurance fraud case, like a conspiracy or committing the insurance fraud while serving a sentence. Felony charges are generally used in cases where the fraudulent act leads to major financial losses for the victim, whether that’s an insurance company or another individual.

In cases of less serious fraud, such as slight overstatements of claims, the crime may only amount to a misdemeanor. However, when that fraud is purposeful and planned and perpetrates great harm, it becomes a felony. This may involve staging accidents, filing falsified injury claims, or submitting fabricated documentation for payment.

Convictions for felony insurance fraud can lead to significant penalties, such as large fines, restitution, probation, and long-term incarceration. The balance has to be struck, and Missouri takes a strong stance in these types of cases to protect the integrity of the insurance system and to deter other individuals from engaging in similar conduct.

What is the statute of limitations on insurance fraud in Missouri?

In Missouri, the statute of limitations for insurance fraud is typically three to five years from the date the fraud is discovered. This timeline allows authorities sufficient time to investigate and build a case while ensuring that legal action is taken promptly. The variation in the statute length depends on the specifics of the case, including the nature of the fraud and the circumstances of its discovery.

This rule helps balance the need to address fraudulent activities while avoiding overly delayed prosecutions that could complicate the legal process. Missouri law, specifically Missouri Revised Statutes Section 375.991, outlines these provisions, emphasizing the importance of prosecuting insurance fraud to maintain the integrity of the insurance industry.

It’s important to act quickly if you suspect insurance fraud, as the statute of limitations is a critical factor in pursuing legal action.

“I’ve dedicated my entire life to helping our clients receive full compensation for their injuries.”

Gary Burger

Personal Injury Attorney

What is the penalty for insurance fraud in MO?

The penalties for insurance fraud in Missouri can include fines, restitution, probation, or imprisonment. Specific consequences depend on the fraud’s nature and scope. For example:

• Misdemeanor charges might result in smaller fines and community service.
• Felony charges can lead to significant fines and up to 15 years in prison, especially for large-scale fraud.

In addition, convicted individuals may be required to repay insurers for any illicit gains. Missouri courts take these cases seriously to protect consumers and maintain the integrity of the insurance system.

Get Help from Experienced St. Louis Lawyers

Our team at Burger Law is here to guide you. With years of experience handling complex cases, we’re committed to protecting your rights. For trusted legal advice in St. Louis, call us today at (314) 500-HURT.

Gary Burger

Founder | Injury Attorney
Gary Burger has dedicated his career to standing up against bullies. The founder and principal attorney of Burger Law | St. Louis Personal Injury Lawyer has helped hundreds of Missouri and Illinois individuals and families recover th …
Years of experience: 30 years
Location: St. Louis, MO

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