New Jersey Section 2C:21-4.6 – Crime of insurance fraud

Understanding New Jersey’s Insurance Fraud Law

Insurance fraud is a big deal in New Jersey. The state has some of the toughest insurance fraud laws in the country, with separate prosecutors dedicated solely to going after fraudsters. So what exactly constitutes insurance fraud in the Garden State? Let’s break it down.

The Basics

New Jersey’s insurance fraud law is found in Section 2C:21-4.6 of the state’s criminal code. The law basically says it’s illegal to knowingly lie or omit important info when dealing with an insurance company.

Some examples:

• Lying on an application to get cheaper premiums
• Filing a claim for damage that didn’t really happen
• Leaving out info to get a payout you don’t deserve

You get the idea. If you intentionally mislead an insurance company, you could be committing fraud under 2C:21-4.6.

Degrees of Crime

Insurance fraud is categorized into degrees based on how bad it is:

Third Degree – This is the basic insurance fraud charge in NJ. It’s for single instances and is a felony offense. Up to 5 years in prison and fines up to $15k.

Second Degree – For 5+ separate acts of insurance fraud totaling over $1,000. Harsher penalties – up to 10 years behind bars and $150k in fines.

Fourth Degree – Insurance fraud under $500 is a lesser fourth degree offense. Up to 18 months in jail and $10k in fines.

So the more fraud and higher dollar amounts = worse charges and penalties. Prosecutors take this stuff seriously.

Common Examples

Some of the most common insurance frauds seen in New Jersey include:

• Auto fraud – Staged accidents, filing claims for damage that didn’t happen, lying about who was driving, etc.
• Workers comp fraud – Employees faking injuries or lying about ability to work to collect benefits.
• Health care fraud – Billing for services that weren’t performed, using someone else’s insurance, etc.
• Property fraud – Lying about theft/damage to collect on homeowners or renters insurance.
• Unemployment fraud – Collecting unemployment while working or ineligible.

After Hurricane Sandy, fraudsters also took advantage by exaggerating property damage claims. Despicable!

Penalties

As mentioned above, penalties vary based on the degree of insurance fraud but can include:

• Years in prison
• Massive fines into the tens or hundreds of thousands
• Restitution to pay back money obtained by fraud
• Probation

Insurance fraud convictions can also severely impact employment and professional licensing. Certain frauds may result in license suspension or revocation.

Defenses

Many insurance fraud charges arise from misunderstandings and honest mistakes. Skilled criminal defense lawyers can raise arguments like:

• You didn’t act “knowingly” or intend to mislead
• Errors were unintentional mistakes, not fraud
• You had a good faith reason for the claim/omission
• The insurance company wasn’t actually misled or harmed

In some cases, charges can be reduced or dismissed through effective negotiation. But insurance fraud defendants need an experienced lawyer on their side.

Takeaways

The main points to remember about New Jersey’s insurance fraud law:

• Lying or misleading insurance companies = fraud
• Harsher penalties for larger dollar amounts and repeat acts
• Prosecutors and insurance companies take this very seriously
• Honest mistakes can sometimes lead to charges
• Skilled legal defense can fight the charges

So tread carefully when dealing with insurance companies in New Jersey. And if charged with insurance fraud, consult with a criminal defense attorney immediately. The right lawyer can thoroughly analyze the charges and build an aggressive defense to achieve the best possible outcome.