Fraudulent insurance claims are a problem faced by the insurance industry. Common examples involve inflated property values, exaggerated personal injuries, arson and other deliberate acts of sabotage, and “insider theft.” Insurance companies are entitled to question the authenticity of all claims.
How far should the insurance company be able to go to obtain evidence of fraud? On what basis should the insurance company be entitled to deny a claim? For example, should an unusual pattern of claims be a basis for denial?