FPCA: Quarterly Fraud Focus–Winter 2009 Edition
Jan 28, 2009
Quarterly Fraud Focus
Winter 2009
www.InsuranceFraud.org
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Is nation’s deflating economy inflating fraud?
Signals are mixed, but warning flares emerging in some lines
With America’s sagging economy threatening to remain a train wreck deep into 2009 and possibly beyond, fraud fighters are concerned that many kinds of insurance schemes will spike as stressed policyholders try to bilk insurers to help bail themselves out of a financial corner. Some insurance crimes already are spreading. Others could flare up before long, investigators say. More will be known as case data percolate up from the mean streets. To read the full story, click here.
Amazing disgrace: Shamers dishonored
America’s most brazen, vicious or plain klutzy insurance crooks
America’s newest pharaohs of fraud and masters of mayhem have been dishonored with election to the coalition’s Insurance Fraud Hall of Shame-and a permanent place on the crime-space continuum. The No-Class of 2008 has the Midas touch-Midas well go to jail. Among this year’s dishonorees are a serial arsonist, an elected judge who made phony auto-injury claims, and two elderly women who killed homeless men for life-insurance money. To read the full story, click here.
Asian Americans in crosshairs of accident ring
Also, agent get 10 years and candy-man doc dolls out drugs
Some 40 unsuspecting Asian-American drivers were ambushed and set up for crashes by a massive staged-accident ring in Queens that made millions of dollars in bogus claims against auto insurers, prosecutors say. Most victims were rammed when backing out of driveways or parking lots. Tomas Aquilas, who allegedly coordinated the crashes, zeroed in on Asians because he believed they’re inept drivers. Police and insurers would blame them for the crashes, he allegedly figured. To read the full story, click here.
Bad-faith lawsuits: Raise standard of proof
By By Sharon Tennyson, Ph.D. & William J. Warfel, Ph.D., CPCU, CLU
Today, a majority of states permits private tort actions against insurers based solely on bad faith in claims settlement, without requiring evidence of traditional torts such as fraud or intentional infliction of emotional distress. An increasing number of states such as Washington also are passing laws allowing lawsuits alleging bad faith. To read the full story, click here.
Budget crises likely to stall 2009 legislation
Michigan, Texas, California and Mississippi targeted for anti-fraud bills
With the economy stuck in reverse, 2009 could challenge fraud fighters to pass legislation as states continue grappling with budget crises. This is a potential repeat of last year’s relatively sparse year for serious fraud legislation. But even so, several states offer glimmers of opportunity. Among the potential hot spots: To read the full story, click here.