Upon discovery of fraudulent claims, what is one immediate action the claims handler can take?

When fraudulent claims are discovered, an immediate action that a claims handler can take is to forfeit the claim. This step is significant because it directly addresses the fraudulent activity by denying any payment related to the claim. Forfeiting the claim is a proactive measure that protects the insurer from financial loss due to fraudulent behavior and maintains the integrity of the claims process.

Additionally, forfeiting the claim allows the insurer to investigate further and compile evidence of the fraud for potential legal proceedings. It serves as an initial response to mitigate risks associated with the fraudulent activity while safeguarding the company and its resources.

The other actions listed often involve additional steps or considerations. Notifying the policyholder and referring the case for legal action may come after the initial decision to forfeit the claim has been made. Consulting with the insurance regulator is usually part of a broader procedure once an insurer confirms fraud but is not typically an immediate action on its own.