Some insurance fraud schemes have involved concurrent insurance, which means?

Concurrent insurance refers to a situation where an individual holds multiple insurance policies that cover the same risk or loss. Therefore, when a fraud perpetrator collects from multiple policies covering the same loss, this is an example of concurrent insurance. It highlights how a person may exploit the system by double-dipping—essentially seeking to receive more compensation than they are entitled to by claiming the same loss from different insurers.

This practice is problematic because it undermines the integrity of the insurance system and can lead to increased costs for honest policyholders. In discussions of fraud, recognizing such schemes is crucial because they are a violation of the principle of indemnity, which aims to make the insured whole but not allow for profit from the insurance claim.