Best Insurance Fraud Lawyers in Maryland

About Insurance Fraud Law in Maryland, United States

Insurance fraud in Maryland is a serious criminal offense that involves attempting to obtain benefits or avoid responsibilities through dishonest means relating to insurance policies. This type of fraud can be committed by policyholders, insurance agents, or service providers and includes misrepresenting facts, submitting false claims, inflating damages, or staging accidents. Maryland treats insurance fraud as both a criminal and civil matter, with strict laws enforcing penalties ranging from fines to imprisonment and possible restitution.

Why You May Need a Lawyer

Legal representation is essential if you are involved or implicated in an insurance fraud investigation or charge in Maryland. Common situations requiring legal help include:

• Receiving notification of an investigation by an insurance company or law enforcement regarding possible fraudulent activity
• Being charged with filing false insurance claims or providing misleading information on insurance documents
• Facing allegations of staging accidents, arson, or manipulating property damage for insurance payouts
• Needing to defend yourself against false accusations from others or mistaken identity
• Working as an insurance professional or medical provider accused of fraudulent billing practices
• Seeking legal advice to avoid unintentionally committing insurance fraud

A lawyer experienced in Maryland’s insurance fraud laws can provide guidance on your rights, help develop a defense strategy, minimize penalties, and negotiate with prosecutors or insurers.

Local Laws Overview

Maryland has specific statutes addressing insurance fraud, primarily found under Maryland Criminal Law Title 27, Subtitle 4. The law makes it a crime to knowingly and willfully make false statements, present false claims, or participate in any scheme to defraud an insurer. Both property and health insurance fraud are covered.

Penalties depend on the value of the fraud. If the amount involved is less than 300 dollars, the offense is a misdemeanor, with penalties including up to 18 months in jail and fines. For amounts over 300 dollars, insurance fraud is a felony, and penalties can reach up to 15 years in prison and 10,000 dollars in fines, in addition to restitution. Maryland also has a compulsory reporting system for insurers and licensed professionals, who must report suspected fraud to the Maryland Insurance Administration’s Insurance Fraud Division.

The state actively prosecutes insurance fraud, and convictions can result not only in criminal penalties but also in civil damages, loss of professional licenses, and long-term impacts on your record.

Frequently Asked Questions

What is considered insurance fraud in Maryland?

Insurance fraud occurs when a person knowingly lies or conceals information to receive benefits or payments from an insurance company, or to avoid paying insurance premiums or claims that are owed.

How common is insurance fraud in Maryland?

Insurance fraud is relatively common and is aggressively investigated by insurers and Maryland authorities. The state dedicates resources to identifying and prosecuting fraudulent activities.

Who investigates insurance fraud in Maryland?

The Maryland Insurance Administration’s Insurance Fraud Division primarily investigates insurance-related crimes, and law enforcement agencies or prosecutors handle criminal cases.

What are possible penalties for insurance fraud?

Penalties vary but may include significant fines, jail or prison time, probation, restitution to the insurer, loss of professional licenses, and lasting criminal records.

Can I be charged for accidentally submitting false information?

Maryland law typically requires that the false information be provided knowingly and willfully, but even mistakes can lead to investigations. It is vital to respond quickly if you are accused.

What if I am falsely accused of insurance fraud?

Seek legal counsel immediately. An attorney can help gather evidence, present your case, and protect your rights throughout any investigation or legal proceedings.

How does the insurance company detect and report suspected fraud?

Insurance companies use specialized fraud detection units, data analysis, and investigations. Maryland law requires them to promptly report suspected fraud to the authorities.

Can insurance fraud affect my current or future insurance policies?

Yes. A fraud conviction can result in policy cancellation, denial of coverage, higher premiums, and being flagged within industry databases.

Is health insurance fraud treated differently than auto or property insurance fraud?

While the specific facts of each case may differ, Maryland laws cover all forms of insurance fraud and impose similar penalties regardless of the insurance type.

What should I do if I suspect someone else of insurance fraud?

Report your suspicions to the Maryland Insurance Administration’s Insurance Fraud Division or local law enforcement. Provide as much relevant information as possible.

Additional Resources

If you need further assistance or want to learn more about insurance fraud in Maryland, these resources may be helpful:

• Maryland Insurance Administration, Insurance Fraud Division
• Maryland Attorney General's Office - Consumer Protection Division
• National Association of Insurance Commissioners (NAIC)
• Maryland State Bar Association Lawyer Referral Service
• Legal Aid Bureau of Maryland

Next Steps

If you suspect you are being investigated for, or have been accused of, insurance fraud in Maryland, take these steps:

1. Do not speak to investigators or insurance representatives about the allegations without consulting a lawyer.
2. Document any communications or relevant details relating to your case.
3. Seek immediate legal advice from an attorney experienced in Maryland insurance fraud law.
4. Gather all documents, emails, or correspondence related to the insurance policy or claim in question.
5. If you require a referral, contact the Maryland State Bar Association or Legal Aid for assistance in finding a qualified lawyer.
6. Follow all legal advice and do not attempt to resolve the issue directly with the insurer without representation.

Proactive and informed steps can help protect your rights and improve the outcome of your insurance fraud case in Maryland.