The sale of a life insurance policy by the policyholder to an authorized life settlement provider is known as a life settlement. The initial policyholder receives a sum that is greater than the cash surrender value he or she could have received from the insurer but less than the current death benefit that the policy is now paying out. The life settlement buyer who buys the policy receives the death benefit paid under the policy when the insured dies in exchange for that payment, as well as all ownership rights under the policy.
The New York criminal law has a number of various offenses related to insurance fraud. The precise insurance fraud offense you will be charged with if you perform an insurance fraud act will depend on a number of different circumstances, including the type of insurance plan involved and the amount of money involved. While most insurance fraud offenses are felonies, some, like insurance fraud in the fifth degree, are misdemeanors. If you perform an insurance fraud act and obtain $1,000 or less in compensation, you will be charged with insurance fraud in the fifth degree under New York Penal Code 176.10.
Life Settlement Fraud In The Fifth Degree Sentence
Fifth-degree life settlement fraud is a category. If you are found guilty of a misdemeanor, you might spend up to a year in jail and be required to pay a fine. The judge may also order you to serve a three-year probationary period.
If you did not intend to defraud the insurer, you would not be guilty of insurance fraud. For instance, you would not have engaged in insurance fraud if you made a claim for items lost in a burglary but were unaware that a specific item had already been taken by a relative. Similarly, you would not have engaged in insurance fraud if the claim included vehicle damage sustained in an accident and you accidentally included damage that actually happened in an earlier occurrence.
Also Read: OFFENSIVE EXHIBITION: NY PENAL LAW § 245.05
New York Penal Code § 176.45: Life Settlement Fraud In The Fifth Degree
When someone engages in a fraudulent life settlement act, they are guilty of life settlement fraud in the fifth degree.
Hiring A New York Lawyer For Life Settlement Fraud In The Fifth Degree Case
Securing the services of a New York lawyer when facing a Life Settlement Fraud in the Fifth Degree case is crucial to protect your legal rights and navigate the complexities of the legal system. In New York, this offense involves fraudulent activities related to life settlements, which can result in serious consequences. An experienced attorney will possess a deep knowledge of New York’s insurance and fraud laws, enabling them to construct a strong defense, gather evidence, and represent your interests effectively. They can negotiate with prosecutors and work to mitigate the charges or penalties. Hiring a New York lawyer is essential for the best possible outcome in your case.