if someone makes an insurance claim against a company that is false, is this insurance fraud and what would be the penalties be?

It is different in every state, and it is usually based on the amount that is taken falsely. This person is actually committing a bunch of crimes, some of them federal. He/she is committing wire or mail fraud, insurance fraud, theft larceny, probably perjury, to name just a few.

If you are aware of the fraud, you are under no obligation to report same, If he or she is committing fraud that is coming out of state or federal funds (like Medicade fraud) if you turn them in you could collect a bit of the money, you should she a qui tam attorney BEFORE going to the authorities,.

If you are aware of the fraud, and choose to say nothing, you may, but if you helped perpertrate the fraud or helped to cover it up afterwood, then you could be charged as well. Finally if he received money, and you knew why and you cashed the check you could be charged with money laundering too.

Hence, be careful and speak to a lawyer of your own choosing. I think it would be wise to have an attorney at the ready if you decide to act.

This information is being submitted for educational purposes only.

Many states have civil and criminal insurance fraud laws. On the civil side the insurance company will probably void the policy and attempt to collect any money paid. On the criminal side, insurance fraud is much harder to prosecute because state's attorneys deal more with violent crimes. Insurance fraud statutes range from misdemeanors to felonies depending on the nature and extent of the claim.

They could be fined, sued, or go to jail or all three.