Legal Question in Insurance Law in Utah

Insurance Fraud

I have a friend who lied to a health insurance company and said that his girlfriend was his wife so she could be on his insurance. He gets this insurance plan through work but he pays a premium for it. He seems to think that it is not against the law to do this. I think it is probably major insurance fraud and could have legal consequences. Can you tell me just how serious it is and what the punishment is if caught? Does it depend on the company or is it one general law that governs this? Thank you for your help.


Asked on 11/08/01, 11:57 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Insurance Fraud

It could be considered either misdemeanor fraud or felony fraud, depending on the final amount of money which is at issue for the premiums and health care. Insurance fraud is a pretty serious matter. If considered felony fraud your friend and her boyfriend are candidates for prison.

Misdemeanor fraud can mean a fine of up to $1500, plus a year in jail, plus repayment of all premiums and health care - for each of them. Felonies can mean much higher fines and prison for years.....

The irony is that some companies arrange for the insurance to be made available for a "significant" other. Have your friend check to see if that is possible under your policy.

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Answered on 11/09/01, 11:19 am


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