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Monthly Archives: January 2013

PIP Auto Insurance Is A Favorite Among Fraudsters

FraudstersPost Date January 30, 2013 – A study by the National Insurance Crime Bureau (NICB) shows U.S. States which have personal injury protection (PIP) insurance coverage as part of their no-fault auto insurance policy form have a higher chance of insurance fraud through fake insurance claims.  States with no-fault auto insurance have PIP auto insurance coverage which compensates policyholders for medical expenses for injuries caused by auto accidents. The PIP Auto Insurance coverage will pay regardless whose fault the accident was.

PIP Auto Insurance and fraud goes together like Peanut Butter and Jelly

The study which used  four years of data from 2008 through June 2012. The NICB showed the large number of fake PIP Auto Insurance claims were abviously influenced by “organized group/ring activity”.  When fake PIP Auto Insurance Claims are influenced by an organized group, everyone have their hands out.  Dishonest Lawyers, Doctors, Insurance Agents and medical clinics seem to be part of the group.  Of the top 5 states that have the most numbers of OGA Organized Group Activity Claims, three of them require no-fault PIP coverage. The five states that have the highest numbers of such claims are as follows: Florida (3,600 claims); California (2,700); Michigan (1,100); Texas (1,000); and New York (800). Among those states, New York, Michigan and Florida require their drivers to have PIP auto insurance coverage at different levels. Texas too has PIP auto insurance coverage but policyholders can opt-out from the coverage.  Four out of the five cities identified also by NICB to have the most numbers of OGA claims belong to states that requires PIP auto insurance coverage. The top 5 cities with highest number of OGA claims are as follows: (Los Angeles (760); New York City (600); Miami (600); Detroit (550); and Tampa (550).

Criminals who are taking advantage of the generous no-fault insurance and PIP auto insurance coverage staged accidents, forged and medical and treatment records, and among other things just to defraud the industry. The state of Florida and New York had been making some efforts to combat the fraud. Last year, Florida instituted a couple of changes to their PIP system, while New York City just recently convened prosecutors and councilman to discuss how they can effectively address the problem.

-Mike  

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Fake Car Insurance Claims Filed By Creeps

Post Date January 29, 2013 – Car Insurance Companies in the state of New Jersey are very concerned over the explosion of fake car insurance claims being filed in the Garden State.  New Jersey prosecutors had a meeting recently to say no to fake car insurance claims.  These fake car insurance claims have flooded the… Continue Reading

Ohio Drivers License Pulled For Being An Idiot

Post Date January 28, 2013 – A driver from Ohio who was recently caught on camera driving her car on the sidewalk.  Although under normal circumstances driving on the side would be considered foolish; in this situation the driver was an idiot.  In fact, the Ohio Drivers license was suspended for a particular stupid driving… Continue Reading

Unlicensed Insurance Agents Sell Insurance Illegally

Post Date January 27, 2012 – Law enforcement all over the United States are dealing with the issue issue of unlicensed insurance agents and websites selling insurance products. Sadly; this is a subject which I have Blogged about time and time again.  Florida is the latest state to come down hard on the unlicensed insurance charlatans. Florida… Continue Reading

Michigan Auto Insurance; So Cheap – It’s Fake

Post Date January 26, 2013 –  Michigan’s Office of Financial and Insurance Regulation (OFIR)  recently informed Michigan vehicle operators  and Michigan Auto Insurance buyers the Michigan Auto Insurance Policy the just purchase is not worth the paper it’s printed on.  The fake Michigan auto insurance policies were sold by an unlicensed seller.  The Michigan Department… Continue Reading

Car Insurance Claims Are Pushing 230,000

Post Date January 22, 2012 – Super Storm Sandy is still causing havoc on the car insurance claims community. Regardless  how many wheels your vehicle had, be it a Car, truck, trailer, car insurance claims are being filed. Sandy hit the East Coast hard the last week of October.  Car insurance claims for all types of vehicles are… Continue Reading

NJ Auto Insurance Fraud If You Fib To Your Agent

Post Date January 21, 2013 – New Jersey Law Makers are pushing a new bill which would prosecute those NJ Auto Insurance Buyers  whom lie on their NJ Auto Insurance Applications.  The #1 reason NJ Auto Insurance buyers do not tell the truth to a NJ Auto Insurance Agent is to lower their Rates.  Reverse rate… Continue Reading

New Car Insurance Comparison Booklet Goes Bye Bye

Post Date January 17, 2013 –  A law cancelling the requirement for new car dealers to provide a federally issued new car  insurance comparison booklet has now been signed into law by President Barack Obama recently. New car buyers will no longer handed the  New Car Insurance Booklet, titled “Relative Collision Insurance Cost Information”.  The… Continue Reading

NJ Car Insurance PIP Rules Recently Changed

Post Date January 17, 2013 –  NJ Car Insurance customers state-wide will be seeing changes in the (PIP) Personal Injury Projection rules that govern their NJ Car insurance as the year 2013 begins.  As I published  in an earlier blog post, there have been many changes in car insurance rules through out the United States… Continue Reading