Insurance
Claim Fraud Identified — Reserve Released
Releasing the full reserve when a claim is confirmed as fraudulent and will not be paid.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Outstanding Claims Reserve (Fraud) | Liability (-) | 15,000.00 | - |
| Claims Expense (Fraud Recovery) | Expense (-) | - | 15,000.00 |
💡 Accountant's Note
When fraud is proven, the reserve is fully released as no payment will be made. The release is a credit to claims expense. Fraud investigation costs (legal, SIU) are expensed separately.
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