An investigation led by the Fraud Division of the Kentucky Department of Insurance (DOI) resulted in court-ordered restitution of $19,380 and a five-year diverted jail sentence for a Pike County woman.

Courtney B. Saunders, 32, of Pikeville, pleaded guilty to a class D felony charge of insurance fraud after DOI identified 39 false medical records submitted by Saunders to AFLAC. Saunders submitted false claims over a two-year period from July 2015 through December 2016. AFLAC paid Saunders $19,380 in claim reimbursements and reported the suspected fraud to DOI. DOI subsequently launched an investigation in October 2017.

Saunders received pretrial diversion, allowing her to avoid jail time as long as she reports to Probation and Parole, remains alcohol-free and drug-free and does not commit further offenses. Additionally, Saunders may not possess a firearm.  

“Scammers benefit significantly from insurance fraud and leave victims suffering from increased premiums, empty wallets and credit problems,” said DOI Commissioner Nancy Atkins. “Kentucky’s fraud investigators work tirelessly to protect the citizens of the Commonwealth from the devastating effects of insurance fraud.”

According to the Coalition against Insurance Fraud, scammers steal approximately $80 billion annually from insurance companies. Since Jan. 1, 2016, DOI’s Fraud Division has successfully prosecuted cases totaling more than $7.9 million in court-ordered restitution.

DOI encourages consumers and insurance companies to utilize DOI’s licensee search function to confirm the license status of agents and agencies and to report suspected insurance fraud by completing DOI’s online form.

For additional information about DOI and insurance fraud, visit,

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