A secret agreement between persons to defraud another, e.g., an insured driver of an automobile and his passenger may misrepresent the facts of an accident in order to have monies paid to the passenger under the insured’s automobile insurance policy.
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An agreement between two or more person to defraud another of his rights by the forms of law, or to obtain an object forbidden by law. For example, if the insured gives incorrect statements of the facts of an accident in order to permit a guest in his car to recover damages, he is guilty of collusion and thus would void the coverage afforded by the Policy.
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UK: Deception perpetrated by two or more parties. Theft insurers exclude theft by collusion when a member of staff is involved. Such a theft has little to do with the security of the premises. Cover may be available under fidelity guarantee insurance.
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MEDICAL,USA: In Medicare fraud, to participate in a scheme with others that might result in higher costs or charges to the Medicare program such as conspiracy between provider and beneficiary or between a supplier and a physician.