Does embezzlement of auto insurance payout for repair constitute insurance fraud?
Question Details: Say an insured person files a claim, true and accurate, but when receives the payout for reparis uses the money for other means and not make repairs to the vehicle, is that insurance fraud?
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I am a lawyer in CT and practice in this area of the law. No, this is not fraud if the claim is a valid claim. you can use the money anyway you want. if you blow the money on something else, you cannot later get more money to fix the car.
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