INSURANCE IS THE PRESUMED protection against a possible loss in exchange for a predetermined fee, which assumes a fee low enough to make the purchase of insurance attractive to the purchaser, but still generating a profit for the company supplying the coverage. Insurance coverage ranges from the mundane (car, life, flood, health) to the exotic (singer's voice, athlete's arms, weather on a certain day). Both parties to an insurance transaction must be amenable to the cost of the coverage.

Insurance fraud occurs when either the seller or buyer of the policy attempts to alter the process to obtain more coverage or profits than entitled, or when third parties to the insurance coverage (for example, medical care providers, automobile repair shops, and claimants) make exaggerated or totally ...