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OFFICIAL COLORADO STATE FRAUD WARNING: It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies.
The Federal Bureau of Investigations reports that insurance fraud accounts for $6 billion of the $80 billion in funds the U.S. government allocated to reconstruction efforts after Hurricane Katrina.
With untold damage by wind and overwhelming flooding, Hurricane Katrina also made way for a spike in incidents of insurance fraud. The storm
Because of the massive scale of damage resulting from the storm, the presumption was that insurance fraud would indeed hit record levels. As a result, the U.S. government responded with the establishment of the Hurricane Katrina Fraud Task Force. Since its founding, this institution expanded its list of responsibilities, and is now known as the National Center for Disaster Fraud.