Understanding Missouri insurance fraud laws

On Behalf of | Mar 3, 2021 | white collar crimes

Insurance fraud in Missouri includes actions that intentionally defraud or deceive an insurance provider to profit from a false claim. Common examples include false accident claims to workers’ compensation or auto insurance policies and exaggerated property damage claims to homeowner’s insurance policies.

Review the common types of insurance fraud in Missouri and possible legal consequences for a conviction.

Types of insurance fraud

Some types of fraudulent insurance actions prosecuted in Missouri include:

  • Workers’ compensation fraud, such as faking an injury or filing a claim for an injury that did not occur at work
  • Unemployment insurance fraud, commonly in the form of claiming benefits while working off the books
  • Disability insurance fraud, such as exaggerating an injury to claim benefits
  • Homeowner’s insurance fraud, such as inflating the value of damaged or stolen property
  • Health insurance fraud, such as seeking reimbursement for supplies or services you did not receive
  • Auto insurance fraud, such as staging an accident or participating in a stolen vehicle scam

Because insurance laws can be complex, individuals may not understand the extent of their fraudulent actions.

Penalties for insurance fraud

Missouri imposes Class E felony charges for those convicted of insurance fraud with no prior convictions for this offense. An offender could receive up to four years in prison along with fines and restitution.

The state can elevate a second or subsequent insurance fraud offense to a Class D felony. This conviction carries up to seven years in prison along with court-ordered monetary penalties.

Sometimes, insurance fraud becomes a federal crime, including situations involving conspiracy, racketeering, identity theft or mail fraud.