Fraud of the Week
Auto Fraud – California
Amount – $100,000+
A California man was arraigned on two felony counts of insurance fraud for renting out his luxury vehicles and then making claims to his insurance carrier with false information regarding the claims. In the first incident in 2016 the man's 2015 Maserati was destroyed in an accident with a center median; the insured claimed a friend was driving the vehicle at the time. The vehicle was a total loss and $53,787 was paid to the lienholder. In 2017 the insured's 2011 Maserati was destroyed when the renter driving the vehicle collided with two other vehicles stopped at a red light. A month later the insured claimed that he damaged his 2012 Rolls Royce in a single vehicle accident. A witness, however, refuted the insured's statement regarding the accident.
As statements regarding drivers and details of the claims made to the carrier were seen as questionable, the claims were investigated and it was discovered that the insured was renting the vehicles to others. The man was not licensed or insured to rent vehicles and the claims were filed under his personal auto policy.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.