CPCU Society and National Insurance Crime Bureau Join Together
WASHINGTON--June 20, 2001--In an effort to educate consumers nationwide about insurance fraud and the price we all pay for these crimes, the Chartered Property Casualty Underwriters (CPCU) Society and National Insurance Crime Bureau (NICB) today released prevention tips that may help Americans avoid becoming fraud victims.This joint education effort is part of the NICB's Insurance Fraud Prevention Week, June 18 - 22, 2001, designed to focus insurance industry and consumer attention on fraud's scope and solutions to these crimes.
The insurance industry estimates that fraud costs consumers $30 billion annually, or approximately $200 - $300 per U.S. household in extra insurance premiums. It is the second most costly white-collar crime in America behind tax evasion, with industry studies showing 10 percent or more of property/casualty insurance claims are fraudulent.
The NICB's Insurance Fraud Prevention Week includes a two-day symposium of insurance industry and law enforcement leaders in Washington, DC, to discuss broad-based solutions to fraud. Additional activities include the nationwide grassroots communication program with the CPCU Society to raise consumer awareness about fraud's magnitude and offer prevention suggestions.
"Many people incorrectly believe insurance fraud doesn't hurt anyone because insurance companies pay for it," says Bruce D. Williams, CPCU Society president. "We all pay for these crimes because a portion of our insurance premiums is used to offset fraud's cost. The bottom line is that insurance fraud is a crime and the people who commit it cheat all of us."
Throughout Insurance Fraud Prevention Week, the CPCU Society's 153 chapters are offering basic crime prevention education to consumers. For additional prevention tips and information about insurance fraud, consumers can access the CPCU Society-NICB website: www.stopinsurancecheats.com.
Common Fraud Scams Affecting Drivers
"Consumers are frequently victimized by fraud criminals while driving. They need to stay especially vigilant to avoid becoming a victim while in their vehicle," says Williams.
The NICB-CPCU Society prevention suggestions include:
| -- | Be particularly careful when turning into a lane that allows for two vehicles to turn left simultaneously. People who intentionally cause collisions prey on cars that cross into the center line by sideswiping the victim's car. |
| -- | If you are in a collision, count the number of passengers in the other vehicle. If possible, obtain their names, telephone numbers, and driver's license numbers. Oftentimes, more people will file claims than were actually in a car. |
| -- | Call the police to an accident scene and get a police report with the police officer's name, even if the damage is negligible. If the report describes damage to the claimant's car as minor, it will be difficult for a criminal to add more damage to the car and attempt to collect a larger claim. |
| -- | Carry a disposable camera in your glove compartment. Take as many pictures of the other car and its passengers as possible. |
Unscrupulous medical and legal practitioners oftentimes become involved in perpetrating fraud by filing false claims and lawsuits following a vehicle or property accident. To avoid these situations, the NICB and CPCU Society recommend you:
-- Be wary of physicians who insist you file a personal injury
claim after an accident, even if you are not hurt.
-- Beware of attorneys who claim their client was seriously
injured on your property, especially if you have no prior
knowledge of the accident or have never seen the claimant. Con
artists often target small businesses and franchise operations
with phony injury schemes.
