Matthew Worley, Esq.
Michigan Secretary of State Ruth
Johnson, in coordination with police, prosecutors, state officials, and
industry leaders has launched a new anti-fraud task force. Fighting Auto Insurance Rip-offs, referred to
simply as FAIR,
is aimed at combatting a growing trend in Michigan – auto insurance fraud.
The scam involves individuals
selling fake auto insurance policies. The
perpetrators then set up fake help desks so when a call is made to verify a
policy, a real person answers and vouches for the non-existent policy. However, as soon as the motorist is in an
accident or tries to make a claim, they realize that there is no policy and
their premiums having been lining someone’s pocket.
In July, Secretary of State
Johnson’s office conducted a one-day review of the 15,000 registration renewals
submitted in all the branches. Of the
insurance policies verified that day, an astonishing 16% were found to be
invalid or fraudulent. These fakes
turned up in more than half of Michigan’s 83 counties.
The burden of these uninsured
motorists is felt by every law-abiding Michigan motorist who follows the law
and carries a no-fault policy. The costs
of having these uninsured motorists on the road rise into the hundreds of millions
of dollars – which translates to higher insurance premiums.
The FAIR task force will explore
new means to combat insurance fraud through procedural changes, new
investigative efforts, and potentially new legislation. It will include representatives from the
Secretary of State’s office, the Michigan
State Police, Michigan prosecutors, and several insurance industry
organizations.
If you have questions about auto
insurance fraud, or any other legal matters, contact the experts at Fausone
Bohn, LLP at (248) 380-0000 or online at www.fb-firm.com.
To learn more about the new fraud
task force, visit: http://www.insurancejournal.com/news/midwest/2013/09/19/305718.htm.
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