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INSURANCE FRAUD

THE ISSUE IS. Reducing the incidence of insurance fraud.

IT'S IMPORTANT BECAUSE. Insurance fraud, in all its forms, costs the American public hundreds of billions of dollars each year and threatens the affordability of insurance in many parts of the country. It is estimated that insurance fraud adds at least $85-120 billion to the cost of health insurance and over $30 billion to property/casualty insurance each year.

For many years, insurance companies have worked to address the problem of fraud. For example, the industry formed and continues to fund the National Insurance Crime Bureau (NICB). Additionally, various consumer, insurance, and government groups formed the Coalition Against Insurance Fraud in an effort to reduce fraud through public education and the enactment of appropriate state and federal regulations.

During the 108th Congress, Sen. Charles Schumer (D-NY) urged the U.S. Department of Justice to create a Federal-State-Local task force to fight auto insurance fraud in New York, and provide $25 million for prosecutors to take on individuals who try to take advantage of New Yorkers, as well as propose new legislation to create tough criminal and civil penalties for auto insurance fraud.

NAMIC POSITION. NAMIC supports efforts to reduce, and ultimately eliminate, insurance fraud and works closely with legislators, regulators, consumer organizations, and other insurance trade associations to accomplish this goal. NAMIC also endorses heightened penalties for insurance fraud, and strongly supports efforts of the NICB, Coalition Against Insurance Fraud, Attorneys General, and various fraud bureaus in order to combat fraud.

NAMIC is encouraged that many state legislatures and insurance departments have made the issue of insurance fraud a top priority and is monitoring activities at the state level. NAMIC is also closely monitoring the activities of Congress and federal agencies to ensure that new federal laws and regulations, such as the establishment of personal privacy standards, do not inadvertently interfere with efforts to combat fraud.

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Legislative Action Network

As a "minuteman," you will be in the know at the critical moment when a call to action is necessary or when decisions are being made on issues like federal regulation of insurance, legal reform, terrorism insurance, asbestos reform and small property/casualty company taxation.

Benjamin Franklin Public Policy Award

Every two years, NAMIC presents their coveted Benjamin Franklin Public Policy Award© to lawmakers who have supported a stronger insurance market at least 75 percent of the time. This is demonstrated based on their support of NAMIC's position on certain roll call votes taken, or being a principal player/sponsor on legislation affected the property/casualty insurance industry, during the previous Congress.