Florida Automobile Joint Underwriting Association Defers Vote on Fraud Proposal
Oct 25, 2011
The Florida Automobile Joint Underwriting Association (“FAJUA”) Board of Governors (“Board”) met via teleconference today, October 25, 2011, and voted to defer action on a proposal from SAS, a business analytics software and services company, to provide analytic services that could help identify insurance fraud. Board members delayed action on the matter because they were unsure of the Florida Department of Financial Services’ (“DFS”) ability to handle the new information such a fraud prevention program would produce.
SAS, located in Raleigh, North Carolina, has products that are widely used by insurance companies, including software that can be used to help identify insurance fraud, particularly personal injury protection fraud.
During the meeting, Board members expressed great interest in the SAS software tools, but wanted more information from the DFS about the agency’s ability to handle more work, and whether it has adequate staffing to handle new data, along with any potential resulting prosecutions. The cost to implement the SAS fraud software would be $450,000.
“DFS wants to make sure they will be able to make use of the work product,” said one Board member. The FAJUA would serve as the funding mechanism for the proposed fraud program, but would not be a signer on a contract, it was explained.
Board members said they hope to meet with DFS and SAS representatives in the next few weeks to discuss the issue.
In other business, the Board also voted unanimously to approve a three-year extension of a contract with Dovetail, a company that provides insurance services and technology to the FAJUA.
With no further business before the Board, the meeting was adjourned.
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