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Insurance Fraud Prevention Authority Releases Statistics for 2000

    MECHANICSBURG, Pa., Feb 13 The Pennsylvania Insurance
Fraud Prevention Authority (IFPA) released its annual statistics, and the
numbers tell a story of hard-nosed enforcement of a crime that may cost
Pennsylvania's families $5,000 a year.

    The IFPA funds 13 law enforcement units throughout the commonwealth using
assessments on insurance companies. Without spending one cent of taxpayer
money, the IFPA has had an undeniable impact on fraud in the state. For the
year 2000, the IFPA's funded units:

     -- Made 285 arrests
     -- Prosecuted cases resulting in $693,000 in court-ordered restitution
     -- Helped save $7 million in potential victim loss, the amount insurers
        would have paid out in bogus claims

    Since 1996, IFPA-funded units have made 1,440 arrests, been responsible
for court-ordered restitution of $5.1 million, and helped save $33.9 million
in potential victim loss.

    "Pennsylvania has always been an innovator and a leader in the fight
against insurance fraud," said Roy Miller, executive director of the IFPA.
"These latest statistics show that the IFPA model works. But more importantly,
the numbers send a clear message: If you're going to commit insurance fraud,
you'd better not do it in Pennsylvania."

    Miller said that aggressive prosecution, high-profile fraud cases and the
IFPA's ongoing media campaign have all helped raise public awareness of
insurance fraud in 2000.

    But Miller also said that, because insurance fraud continues to place a
financial burden on consumers, the anti-fraud push must continue.  A Conning &
Co. study released in late January estimates that insurance fraud costs
families approximately $5,000 a year in higher premiums and higher consumer
costs.

    The Pennsylvania Insurance Fraud Prevention Authority was created by the
Pennsylvania State Legislature when it passed the Insurance Fraud Prevention
Act in 1994. The IFPA arms law enforcement and prosecutors with the resources
necessary to fight insurance fraud. It also operates an aggressive, ongoing
public awareness campaign. The IFPA funds its efforts through assessments of
insurance company that write policies in the state. It uses no taxpayer
dollars.

    The IFPA funds insurance fraud units affiliated with the following:

     Allegheny County District Attorney's Office
     Allegheny County Police Department
     Cumberland County District Attorney
     Delaware County District Attorney
     Erie County District Attorney
     Harrisburg Bureau of Police - Arson Unit
     Lehigh County District Attorney's Office
     Millcreek Township Police Department
     Montgomery County District Attorney's
     Northeastern Regional Task Force
     Office of the Attorney General (in Harrisburg, Norristown, and
      Pittsburgh)Pennsylvania State Police - Fire Marshal Division
     (Harrisburg)
     Philadelphia District Attorney's Office