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Florida Outpaces Nation in Insurance Fraud Convictions

Florida once again leads the nation in the number of insurance fraud convictions and cases presented for prosecution, according to a study released today by the Coalition Against Insurance Fraud, a national alliance of consumer organizations, insurance companies and government agencies working to combat insurance fraud.

Chief Financial Officer Tom Gallagher noted the study showed the Department of Financial Services, Division of Insurance Fraud, has outpaced other state fraud bureaus - including posting the largest gain in the number of insurance fraud convictions - while working with a staff and budget two-thirds smaller than other key states.

"Our investigators work long hours on complex cases that often involve multiple organizations and even multiple states and countries," Gallagher said."This report is evidence that the dedication of these investigators, other law enforcement agencies and state prosecutors is making a real difference in the battle against insurance fraud."

It is estimated that insurance fraud costs the average Florida family as much as $1,400 a year in increased premiums and higher costs for goods and services.Gallagher said insurance fraud schemes not only are getting costlier and more complex, but also more dangerous.

This year the Legislature passed the Pete Orr Insurance Anti-Fraud Act, named after a former central Florida NASCAR-circuit driver who died of cancer last year while his health care claims were denied by his insurer, TRG Marketing Group.TRG was never licensed to transact insurance in Florida or any other state.

"Florida continues to lead the nation, as it has for several years, in the number of cases (771) referred for prosecution in 2002," the Coalition report stated. California presented the second highest number with 687.

"The fraud bureau in the Florida insurance department continues to lead the nation with 458 convictions in 2002," the report also noted. New York was second with 389 convictions.The average number of convictions among the 43 reporting states was 74.

The department has captured national attention with a campaign launched two years ago urging consumers to "Verify Before You Buy."Using radio and television advertising, billboards, hundreds of articles, columns and news reports, Gallagher has worked to educate Floridians on the importance of being sure of what they are buying and from whom they are buying it.

"We will continue to arrest and prosecute those who prey on our citizens," Gallagher said. "We are equally committed to giving consumers the tools they need to make good financial decisions."

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