{"id":373108,"date":"2017-12-20T13:46:44","date_gmt":"2017-12-20T18:46:44","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/illinois-law\/illinois-insurance-fraud-laws.html"},"modified":"2018-01-17T18:09:22","modified_gmt":"2018-01-17T23:09:22","slug":"illinois-insurance-fraud-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/illinois-law\/illinois-insurance-fraud-laws.html","title":{"rendered":"Illinois Insurance Fraud Laws"},"content":{"rendered":"\n
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Illinois Insurance Fraud Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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Adding old damage to a new auto insurance claim may seem like a little white lie. However, any false or exaggerated claim submitted to an insurance company can be considered insurance fraud. Typically, the offense occurs when a person seeks compensation for injuries or losses that were not actually suffered. Don’t let a misrepresentation on an insurance claim get you into trouble. This review will familiarize you with the basics of Illinois insurance fraud laws.<\/p>\n

What is Insurance Fraud?<\/h2>\n

Insurance fraud can be related to auto insurance, worker’s compensation claims, medical insurance, home-owner insurance, and life insurance policies. The common thread is that fraud revolves around a purposeful misrepresentation<\/a> of fact to an insurer to gain an unearned benefit. Nothing of monetary value needs to change hands for a fraud to occur.<\/p>\n

The defendant in a fraud action could face both criminal prosecution and a civil action for the same conduct. The basic difference between criminal fraud and civil fraud lies in who is pursuing legal action in the case.<\/p>\n

Elements of an Illinois Insurance Fraud Case<\/h2>\n

Before you’re convicted in an insurance fraud case, there are certain elements that must be proven<\/a> beyond a reasonable doubt. In Illinois, proof that the Defendant did the following actions is required:<\/p>\n

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  1. Knowingly obtains, attempts to obtain, or causes to be obtained;<\/li>\n
  2. By deception, control over the property of an insurance company, or self-insured entity;<\/li>\n
  3. By the making of a false claim; or<\/li>\n
  4. By causing a false claim to be made on any policy of insurance issued by an insurance company;<\/li>\n
  5. Intending to deprive an insurance company or self-insured entity permanently of the use and benefit of that property.<\/li>\n<\/ol>\n

    Penalties for Insurance Fraud in Illinois<\/h2>\n

    Illinois hands out tough sentences for those convicted<\/a> of insurance fraud. Punishments are determined by the amount of money or value of the property the accused attempted to recover from the insurance company. Basically, the greater the value of the property involved, the more severe the penalty.<\/p>\n

    For example, if your car is stolen and you fraudulently claim your laptop was in the car at the time, you would be guilty of a Class 3 felony. Under Illinois law, this is punishable by two to five years in prison.<\/p>\n

    Overview of Illinois Insurance Fraud Laws<\/h2>\n

    The following chart highlights important aspects of Illinois laws on insurance fraud.<\/p>\n\n
    Illinois Statutes<\/b><\/td>\n
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    Penalties for Insurance Fraud<\/b><\/td>\n
    \nValue of the property obtained is $300 or less:<\/b>
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    • Class A misdemeanor<\/li>\n
    • Punishable by a up to a year in jail and a fine as much as $2,500<\/li>\n<\/ul>\nValue of the property obtained is more than $300 but less than $10,000:<\/b>
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      • Class 3 felony<\/li>\n
      • Punishable by 2 to 5 years in prison<\/li>\n<\/ul>\nValue of the property obtained is more than $10,000 but less than $100,000:<\/b>
          \n
        • Class 2 felony<\/li>\n
        • Punishable by 3 to 7 years in prison<\/li>\n<\/ul>\nValue of the property obtained is more than $100,000:<\/b>
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          • Class 1 felony<\/li>\n
          • Punishable by 4 to 15 years in prison.<\/li>\n<\/ul>\n<\/td>\n<\/tr>
    Common Defense<\/b><\/td>\n

    Possible defense to insurance fraud include:<\/b><\/p>\n