A Video Explaining the Investigation of Third Party Insurance Fraud
Third Party Insurance Fraud
Read the full article at https://www.linkedin.com/pulse/third-party-insurance-fraud-barry-zalma-esq-cfe and see the full video at https://rumble.com/vjl56t-third-party-insurance-fraud.html and at
and at https://zalma.com/blog plus more than 3800 posts.
Insured Suspected
If the insured is suspected of involvement in a third party insurance fraud, like a staged automobile accident, it will be necessary for the insurer to retain two attorneys. One attorney will be required to defend the insured under the terms of the policy. This attorney owes his or her primary duty to the client, not the insurer, so will not be advised of the potential fraud. If he or she learns of facts that prove the insured is involved in fraud, the attorney may not disclose that information to the insurer. He or she is also ethically obligated to refuse to participate in the fraud and would, therefore, withdraw from the defense.
Insured not Suspected
When the insurer suspects that the insured is the victim of a fraudulent claim, counsel is retained to represent the insured and given full information about the fraud. Such an attorney should be a special breed of counsel, ready to take every case presented to them to a trial before a jury. These attorneys are selected not for their negotiation skills but rather for their trial skills.
An insurer intent on defeating fraud will instruct counsel to try to a verdict every case where fraud is suspected and capable of proof. No authority should be provided for settlement other than to accept a dismissal of the suit with prejudice.
© 2021 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.
Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.
Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma;  Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts; and the last two issues of ZIFL at https://zalma.com/zalmas-insurance-fraud-letter-2/ podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4