Fraud can increase insurance costs for everyone, although efforts are being made in New Jersey to help curb instances of abuse.
Department of Banking and Insurance Commissioner Tom Considine wrote recently on the group's site to mark October as Insurance Fraud Awareness Month. He said a new unit, the Bureau of Fraud Deterrence, was recently incorporated into his office. It has previously been part of the attorney general's office.
"The bureau will be responsible for investigating and enforcing civil violations of the [New Jersey] Fraud Insurance Prevention Act and our partners at the Department of Law and Public Safety will continue to investigate and prosecute criminally those who perpetrate fraud," Considine wrote.
Fraud can take a number of forms, while even mistakes may end up causing consumers trouble with life insurance policies. Not having the correct information, or neglecting to list medical conditions, could void any benefits that should be paid through the coverage.
Experts recommend consumers be completely honest when applying for a life insurance policy. While being worried about costs may cause some to hide the truth, having false information could prove to undo the coverage completely.