Insurance theft, often categorized as insurance fraud, occurs when individuals or organizations misrepresent or falsify information to claim undeserved benefits from an insurance company. This act can range from simple falsifications to elaborate schemes involving multiple parties. Insurance theft can happen in several forms, including but not limited to health insurance fraud, auto insurance theft, or property insurance scams.
The penalties for insurance theft can be severe, depending on the scope and value of the fraudulent claims. Insurance theft is prosecuted as a serious offense, and the laws governing it vary across states.
Insurance Theft Laws
Insurance theft, like other forms of fraud, is illegal under both federal and state law. The law aims to protect insurance companies from individuals or groups attempting to profit illegally through fraudulent claims. Each state has its specific legal statutes governing what constitutes insurance theft and the accompanying penalties.
Insurance theft can include:
- Claiming property or injury losses that didn’t occur.
- Deliberately damaging property to collect insurance money.
- Filing multiple claims for a single loss.
- Providing false information to obtain insurance coverage or lower premiums.
Insurance companies have investigative units that are dedicated to detecting fraud, and once insurance theft is suspected, the insurance company often works with law enforcement to prosecute those involved.
Insurance Theft Sentencing Guidelines
Penalties for insurance theft vary depending on the amount stolen and the severity of the offense. In most cases, if the value of the theft is high, the crime is considered a felony and can result in prison time, large fines, and restitution to the victims or insurance company.
Typical penalties include:
- Prison terms ranging from one to 10 years for felony convictions.
- Fines that can reach up to $50,000 or more, depending on the state and the extent of the fraud.
- Restitution payments, which are meant to compensate insurance companies for their losses.
In addition to these penalties, individuals convicted of insurance theft may face difficulties obtaining insurance coverage in the future, as well as potential civil lawsuits brought by the defrauded insurance companies.
Insurance Theft Statute of Limitations
The statute of limitations for insurance theft varies by state. Typically, the statute of limitations ranges from **3 to 10 years**, depending on the jurisdiction and the specific nature of the crime. Here are some general guidelines:
- California: The statute of limitations for insurance fraud is **3 years** from the discovery of the fraud.
- Florida: **5 years** from the date of the offense.
- New York: The statute of limitations for most insurance fraud cases is **5 years**.
- Texas: Typically **7 years**, but this can vary depending on the case.
- Ohio: **6 years** for most types of insurance fraud.
In some cases, if the fraud was not discovered immediately, the statute of limitations may be extended to begin from the date of discovery of the fraudulent activity.
Insurance Theft Cases
Insurance theft cases vary in complexity and scale. Some examples include:
- An individual deliberately causing an accident to collect on an auto insurance policy.
- Providing false information on a life insurance application to collect more significant benefits after the death of a policyholder.
- Doctors billing insurance companies for services never rendered.
- Homeowners falsely claiming damage from a disaster to collect insurance payments for repairs.
Many of these cases are prosecuted at the state level, but large-scale insurance theft can become a federal issue, especially when it involves interstate criminal activity or affects federally funded insurance programs.
Insurance Theft Laws & Statue of Limitations By State
Insurance theft laws vary by state, as do the penalties and statute of limitations around committing the crime. Some states impose harsher penalties depending on the value of the theft and the defendant’s prior criminal history:
Alabama
Under Code of Alabama Section 13A-9-6:
- Insurance fraud can result in fines up to $15,000 and imprisonment for up to 10 years.
- The statute of limitations is 5 years.
Alaska
Under Alaska Stat. Section 11.46.600:
- Insurance theft can lead to fines up to $25,000 and imprisonment for up to 10 years.
- The statute of limitations is 6 years.
Arizona
Under A.R.S. Section 20-466:
- Insurance fraud is a felony with penalties including fines up to $150,000 and imprisonment for up to 10 years.
- The statute of limitations is 7 years.
Arkansas
Under Ark. Code Ann. Section 5-37-226:
- Insurance theft violations can result in fines up to $10,000 and imprisonment for up to six years.
- The statute of limitations is 5 years.
California
Under California Penal Code Section 550:
- Insurance fraud can lead to fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 3 years.
Colorado
Under Colorado Revised Statutes Section 18-5-211:
- Insurance theft can result in fines up to $500,000 and imprisonment for up to 12 years.
- The statute of limitations is 6 years.
Connecticut
Under Connecticut General Statutes Section 53a-215:
- Insurance theft violations can lead to fines up to $5,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
Delaware
Under Delaware Code Title 18, Section 2407:
- Insurance theft can result in fines up to $10,000 and imprisonment for up to 15 years.
- The statute of limitations is 5 years.
Florida
Under Florida Statutes Section 817.234:
- Insurance fraud can lead to fines up to $100,000 and imprisonment for up to 30 years.
- The statute of limitations is 5 years.
Georgia
Under Georgia Code Section 33-1-9:
- Insurance fraud is a felony with penalties including fines up to $10,000 and imprisonment for up to 10 years.
- The statute of limitations is 4 years.
Hawaii
Under Hawaii Revised Statutes Section 431:2-403:
- Insurance theft violations can result in fines up to $10,000 and imprisonment for up to 10 years.
- The statute of limitations is 3 years.
Idaho
Under Idaho Code Section 41-293:
- Insurance fraud can lead to fines up to $15,000 and imprisonment for up to 15 years.
- The statute of limitations is 5 years.
Illinois
Under Illinois Compiled Statutes 720 ILCS 5/17-10.5:
- Insurance fraud is a felony with penalties including fines up to $25,000 and imprisonment for up to 15 years.
- The statute of limitations is 5 years.
Indiana
Under Indiana Code Section 27-1-3-1:
- Insurance theft violations can result in fines up to $10,000 and imprisonment for up to 10 years.
- The statute of limitations is 5 years.
Iowa
Under Iowa Code Section 507E.3:
- Insurance theft can lead to fines up to $10,000 and imprisonment for up to five years.
- The statute of limitations is 3 years.
Kansas
Under Kansas Statutes Section 40-2,118:
- Insurance fraud is a felony with penalties including fines up to $25,000 and imprisonment for up to 15 years.
- The statute of limitations is 5 years.
Kentucky
Under Kentucky Revised Statutes Section 304.47-020:
- Insurance theft violations can lead to fines up to $5,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
Louisiana
Under Louisiana Revised Statutes Section 22:1243:
- Insurance theft can result in fines up to $50,000 and imprisonment for up to 10 years.
- The statute of limitations is 4 years.
Maine
Under Maine Revised Statutes Title 24-A, Section 2186:
- Insurance fraud can lead to fines up to $5,000 and imprisonment for up to five years.
- The statute of limitations is 6 years.
Maryland
Under Maryland Code Section 27-405:
- Insurance theft violations can result in fines up to $25,000 and imprisonment for up to 15 years.
- The statute of limitations is 5 years.
Massachusetts
Under Massachusetts General Laws Chapter 175, Section 111B:
- Insurance fraud can lead to fines up to $10,000 and imprisonment for up to five years.
- The statute of limitations is 6 years.
Michigan
Under Michigan Compiled Laws Section 500.4503:
- Insurance theft is a felony with penalties including fines up to $25,000 and imprisonment for up to 10 years.
- The statute of limitations is 6 years.
Minnesota
Under Minnesota Statutes Section 609.611:
- Insurance theft can result in fines up to $100,000 and imprisonment for up to 20 years.
- The statute of limitations is 5 years.
Mississippi
Under Mississippi Code Section 83-13-1:
- Insurance fraud violations can lead to fines up to $5,000 and imprisonment for up to five years.
- The statute of limitations is 3 years.
Missouri
Under Missouri Revised Statutes Section 375.991:
- Insurance fraud is a felony with penalties including fines up to $10,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
Montana
Under Montana Code Annotated Section 33-1-1302:
- Insurance theft can result in fines up to $50,000 and imprisonment for up to 10 years.
- The statute of limitations is 5 years.
Nebraska
Under Nebraska Revised Statutes Section 44-6602:
- Insurance fraud violations can lead to fines up to $25,000 and imprisonment for up to 20 years.
- The statute of limitations is 5 years.
Nevada
Under Nevada Revised Statutes Section 686A.2815:
- Insurance fraud can result in fines up to $10,000 and imprisonment for up to five years.
- The statute of limitations is 4 years.
New Hampshire
Under New Hampshire Revised Statutes Section 638:20:
- Insurance theft is a felony with penalties including fines up to $10,000 and imprisonment for up to 10 years.
- The statute of limitations is 5 years.
New Jersey
Under New Jersey Statutes Section 2C:21-4.6:
- Insurance fraud violations can lead to fines up to $150,000 and imprisonment for up to 10 years.
- The statute of limitations is 5 years.
New Mexico
Under New Mexico Statutes Section 59A-16C-2:
- Insurance fraud can result in fines up to $50,000 and imprisonment for up to 10 years.
- The statute of limitations is 4 years.
New York
Under New York Penal Law Section 176.05:
- Insurance fraud violations can lead to fines up to $150,000 and imprisonment for up to 15 years.
- The statute of limitations is 5 years.
North Carolina
Under North Carolina General Statutes Section 58-2-161:
- Insurance theft is a felony with penalties including fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
North Dakota
Under North Dakota Century Code Section 26.1-02-27:
- Insurance fraud can result in fines up to $10,000 and imprisonment for up to five years.
- The statute of limitations is 3 years.
Ohio
Under Ohio Revised Code Section 2913.47:
- Insurance theft violations can lead to fines up to $25,000 and imprisonment for up to five years.
- The statute of limitations is 6 years.
Oklahoma
Under Oklahoma Statutes Section 21-1662:
- Insurance fraud is a felony with penalties including fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
Oregon
Under Oregon Revised Statutes Section 165.692:
- Insurance theft can result in fines up to $100,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
Pennsylvania
Under Pennsylvania Consolidated Statutes Section 4117:
- Insurance fraud violations can lead to fines up to $50,000 and imprisonment for up to seven years.
- The statute of limitations is 5 years.
Rhode Island
Under Rhode Island General Laws Section 27-54-3:
- Insurance theft can result in fines up to $50,000 and imprisonment for up to 10 years.
- The statute of limitations is 3 years.
South Carolina
Under South Carolina Code Section 38-55-540:
- Insurance fraud violations can lead to fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
South Dakota
Under South Dakota Codified Laws Section 58-4A-2:
- Insurance theft can result in fines up to $25,000 and imprisonment for up to five years.
- The statute of limitations is 6 years.
Tennessee
Under Tennessee Code Annotated Section 56-53-103:
- Insurance fraud violations can lead to fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 4 years.
Texas
Under Texas Penal Code Section 35.02:
- Insurance theft can result in fines up to $250,000 and imprisonment for up to 10 years.
- The statute of limitations is 7 years.
Utah
Under Utah Code Section 76-6-521:
- Insurance fraud can result in fines up to $10,000 and imprisonment for up to five years.
- The statute of limitations is 4 years.
Vermont
Under Vermont Statutes Title 13, Section 2032:
- Insurance theft violations can lead to fines up to $10,000 and imprisonment for up to 10 years.
- The statute of limitations is 5 years.
Virginia
Under Virginia Code Section 18.2-178:
- Insurance theft can result in fines up to $100,000 and imprisonment for up to five years.
- The statute of limitations is 5 years.
Washington
Under Revised Code of Washington Section 48.30A.015:
- Insurance fraud can lead to fines up to $100,000 and imprisonment for up to five years.
- The statute of limitations is 6 years.
West Virginia
Under West Virginia Code Section 61-3-24d:
- Insurance theft violations can lead to fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 3 years.
Wisconsin
Under Wisconsin Statutes Section 943.395:
- Insurance fraud can result in fines up to $50,000 and imprisonment for up to five years.
- The statute of limitations is 6 years.
Wyoming
Under Wyoming Statutes Section 6-3-607:
- Insurance theft violations can lead to fines up to $10,000 and imprisonment for up to 10 years.
- The statute of limitations is 4 years.