INDIANAPOLIS (July 15, 2005)—“NAMIC applauds Commissioner Jim Atterholt’s leadership in creating the Insurance Anti-Fraud Task Force and is pleased to be an active task force participant,” said Tami Stanton, NAMIC State Affairs Manager for Indiana. “Insurance fraud negatively impacts insurers and consumers alike and we look forward to discussing effective ways of evaluating and addressing insurance fraud issues specific to Indiana. Commissioner Atterholt’s actions, coupled with the major insurance fraud legislation passed by the 2005 Indiana General Assembly, send a strong message to those contemplating committing insurance fraud in the Hoosier state.”
“The Commissioner’s task force meets July 19 to discuss the feasibility of creating a fraud bureau housed within the Department of Insurance. There are only 10 states that do not have insurance fraud bureaus and Indiana is one of them. As with many legislative initiatives, however, the funding mechanism is the major hurdle,” explained Stanton. “The state’s finances are tight, yet insurers are already a significant contributor to the general fund, paying more than $177 million in premium taxes in 2003.”
Stanton also noted that Indiana’s new insurance fraud legislation, HEA 1403, just went into effect on July 1. The bill strengthened Indiana’s existing fraud statute considerably by expanding the definitions of insurance fraud and enhancing the penalties.
“NAMIC is committed to combat a crime that cost the property and casualty industry an estimated $29 billion in 2003. In addition to legislative and regulatory activity in Indiana, NAMIC released an insurance fraud Issue Brief, in May, highlighting the actions taken by states to fight insurance fraud throughout the country,” said Stanton.
NAMIC’s Issue Brief “Insurance Fraud: Most States Act to Curb the Abuses, But Adequate Statutory Remedies Still Lacking in a Few States:”
The Issue Brief can be downloaded from NAMIC’s website, NAMIC Online.
Posted: Friday, July 15, 2005 12:00:00 AM. Modified: Friday, July 15, 2005 3:32:35 PM.
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