These tools will penetrate the schemes of corrupt professionals and identify other insurance criminals with greater speed and precision than ever before. The NICB employs a number of weapons in its fight against fraud. Unfortunately, the public is not as concerned as it should be about fraud and its consequences, and that is costing them money. One example to heighten awareness is the joint effort with the CPCU Society and its more than 30,000 credentialed insurance professionals to educate consumers about possible fraudulent situations that exist. Misdemeanor to felony Bryant indicates that one of NICB's major efforts in 2001 will be to work through state legislatures to toughen anti-fraud statutes even further.
Most states now classify fraud as a felony rather than as a misdemeanor.
What we would like to see is the creation of heavier penalties for certain types of fraud, like staged auto accidents or organized medical mills. We would also like to see a stronger immunity statute which would allow insurance companies to work more closely with each other in sharing information. The role of the agent will become more important in the anti-fraud effort as well. This includes knowing his or her clients and what's going on in the community, particularly in less than a large city, and reporting any suspicious activity or abnormal situation to the proper law enforcement agency and insurance company. The author Samuel Schiff is a New York-based freelance writer.