ECONOMIC INSTITUTIONS AND INDIVIDUAL ETHICS - A STUDY OF CONSUMER ATTITUDES TOWARD INSURANCE FRAUD

This paper explores the determinants of consumers attitudes toward fil ing exaggerated automobile insurance claims. Using individual response s to a national survey, and building on the socioeconomic literature o n attitude formation, the paper formulates and tests hypotheses regard ing consumers' approval or disapproval of claims exaggeration. The stu dy finds support for the hypotheses that the attitudes toward claims e xaggeration of others' in one's state, one's own attitudes toward dish onesty in other settings, and perceptions of insurance institutions ar e related to attitudes toward filing exaggerated claims.