In Your Corner: Insurance fraud now a felony in Alabama

BIRMINGHAM, Ala. (WIAT) – Staged auto accidents and bogus medical claims are just some of the many scams that cost insurers billions of dollars each year.

Alabama has recently joined the ranks of the states that are fighting back, making insurance fraud a crime.

High premiums as a result of insurance fraud impact everyone, not just businesses.

According to the law passed last summer, insurance fraud is now seen as a felony.

Birmingham Police have become the first in the state to make a case on the newly passed legislation.

Roderick Caffey and Rita Barnes are accused of demanding money from the insurance company of a local business after faking a slip and fall.

Sgt. Roby with the Birmingham Police Department says if anyone is suspicious of a claim, they should file a police report and they will investigate it.

Copyright 2013 WIAT-TV CBS 42

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