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The Crime of Insurance Fraud in New Mexico: An Overview
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The Crime of Insurance Fraud in New Mexico: An Overview
Insurance fraud is a big problem here in New Mexico that affects everyone. I wanted to write this article to help folks understand what insurance fraud is, why people do it, what the penalties are, and what we can do to stop it.
First off, what exactly is insurance fraud? Basically it’s when someone lies or leaves out important info to try and get money from an insurance company. For example, maybe someone gets into a fender bender but then lies and says they got hurt bad so the insurance will pay them more. Or maybe someone’s house burns down from an electrical fire but they lie and say it was from a lightning strike so the insurance will cover it. Not cool!
Why Do People Commit Insurance Fraud?
There’s a few main reasons why people commit insurance fraud:
- To get more money from the insurance company – This is probably the biggest reason. Folks want to try and get as much cash as they can.
- To avoid getting in trouble – Sometimes people will lie to avoid getting their rates increased or policy cancelled if they did something wrong.
- Out of desperation – When times are tough, some people resort to fraud to try and get fast cash.
Of course, none of these are good excuses for breaking the law! But it helps to understand why people do it.
What are the Penalties for Insurance Fraud in New Mexico?
If you’re caught committing insurance fraud here in New Mexico, you could be facing some pretty serious penalties depending on how much money was involved. According to Section 59A-16C-13 of state law, it can be either a felony or misdemeanor.
For lower dollar amounts less than $2,500, it would likely be a misdemeanor. This could mean up to 1 year in jail and fines up to $1,000. Not fun!
But for larger amounts of $2,500 or more, it becomes a felony. Punishments get much more severe here – we’re talking multiple years in prison if convicted. And if the fraud amount is really big, $20,000 or more, it becomes a second degree felony with up to 9 years behind bars.
Yikes! As you can see, insurance fraud is not taken lightly here in New Mexico. The penalties can really ruin someone’s life if they get caught.
What are Some Recent Examples of Insurance Fraud?
To make this all more clear, let’s look at some real life examples of insurance fraud that have happened right here in New Mexico:
- A woman in Albuquerque faked slipping and falling in a grocery store to try and get the store’s insurance to pay her $47,000. She even pretended to need crutches! [1]
- A man in Las Cruces claimed his truck was stolen to try and get $19,000 from his auto insurance. But police found out he actually hid the truck at a family member’s house! [2]
- A Santa Fe woman lied that hail damaged her roof so her homeowner’s insurance would give her $10,000. An investigation found there was no hail storm in her area. [3]
As you can see, insurance fraud takes all shapes and sizes. But in the end it harms all of us here in New Mexico.
How Can We Stop Insurance Fraud?
The best way to combat insurance fraud is for all of us to work together and look out for the signs. Here’s what you can do:
- Educate yourself on the common signs of insurance fraud.
- If you suspect fraud, report it! Contact the NM Office of the Superintendent of Insurance.
- Don’t exaggerate or embellish claims – always be truthful with your insurance company.
- Encourage others you know to avoid insurance fraud.
- Vote for leaders tough on insurance fraud laws.
It will take a group effort, but I believe we can push back against insurance fraud here in New Mexico. Remember – it harms us all through higher premiums and rates. So be vigilant and speak up if you suspect anything fishy. Together we can make a difference!
Let me know if you have any other questions!
References
- Woman Accused in $47,000 Insurance Fraud, Albuquerque Journal
- Las Cruces Man Suspected of Insurance Fraud, Las Cruces Sun News
- Santa Fe Woman Accused of Insurance Fraud, Santa Fe New Mexican