Arkansas Insurance Fraud Laws

Code Section

What's Prohibited?

Committing a "fraudulent insurance act."

A fraudulent insurance act means an act or omission committed by a person who, knowingly and with the intent to defraud, deceive, conceal, or misrepresent does any of the following:

• Presents (or prepares) false information as part of an application for insurance, the rating of an insurance policy, a claim for a payment or benefit under an insurance policy, premiums paid on an insurance policy, payments made under an insurance policy, a document filed with a chief insurance regulatory official, the financial condition of an insurer, the status of an insurer, the issuance of written evidence of insurance, or the reinstatement of an insurance policy
• Soliciting or accepting insurance risks on behalf of an insurer by a person who should know that the insurer is insolvent
• Removing, concealing, altering, or destroying the assets or records of an insurer
• Embezzling property from an insurer
• Transacting insurance business in violation of the law
• Attempting to commit (or conspiring to commit) any illegal act listed in this section
• Issuing counterfeit insurance policies
• Possessing counterfeit insurance policies or other insurance documents (or possessing any device used to make these counterfeit documents), or
• Falsely holding himself or herself out as a representative of an insurance company

Penalties

Class D felony. Punishable by imprisonment for up to six years, and/or a fine of up to $10,000 (per violation).

Offenders are also ordered to pay restitution to the victims of their crime.