U.S. Senate Subcommittee Reviews Insurance Fraud Issues
Aug 3, 2017
At a U.S. Senate Subcommittee hearing entitled “Insurance Fraud in America: Current Issues Facing Industry and Consumers” held this morning, August 3, 2017, in Washington D.C., U.S. Senator Bill Nelson (D-Fla.) recalled his days as Florida Insurance Commissioner, during which time he said he witnessed “despicable” examples of insurance fraud.
Senator Nelson used part of his statement to appeal to his colleagues for a bipartisan solution to the ongoing political wrangling over affordable health insurance.
Echoing his sentiments was Oklahoma Insurance Commissioner John Doak, who also testified today on behalf of the National Association of Insurance Commissioners (“NAIC”) and called current insurance fraud trends “disturbing.”
“With consumers and businesses spending over $2 trillion on insurance per year, tempting windows of opportunity are created for criminals,” said Commissioner Doak, who chairs the NAIC’s Antifraud Task Force. “We continue to adapt strategies that prevent and detect fraud in order to protect consumers and maintain insurers’ financial health.”
However, insurers and consumers are equally to blame in the fraud problem, Consumer Federation of America Legislative Director and General Counsel Rachel Weintraub admonished.
“We would welcome Congress undertaking research to document and to minimize these types of harmful actions that put consumers at great economic disadvantage, so long as the effort is deployed in such a way that considers the whole range of frauds being committed in the insurance market, as we have outlined here,” she added. “We support efforts to control these types of fraud, with the important warning that the prospect of fraud should not be used as a device to justify an unscrupulous attack on innocent consumers seeking claims payments.”
Below are hyperlinks to the panel members’ respective testimony, as the statements from Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security Chairman Jerry Moran (R-Kan.) and Senator Nelson.
To access a video replay of today’s hearing, click here.
Oklahoma Insurance Commissioner, testifying on behalf of the National Association of Insurance Commissioners (NAIC)
Executive Director, Coalition Against Insurance Fraud
Chief Executive Officer, Insurance Information Institute
Director of Government Affairs, National Insurance Crime Bureau
Legislative Director and General Counsel, Consumer Federation of America
Should you have any questions or comments, please contact Colodny Fass.