Insurance Department

Insurance Frauds Bureau: Activities to Combat Automobile Insurance Fraud

The Insurance Frauds Bureau was established by the State Legislature in 1981. We examined certain aspects of the Bureauís efforts to detect and investigate automobile insurance fraud. We found that significant improvements were needed in the Bureauís coordination with insurance companies, which are required to submit reports to the Bureau about suspected frauds. We also found that improvements could be made in the design and system documentation of the Bureauís database for automobile insurance fraud. We further determined that a formal performance measurement system had not been established to assess the effectiveness of the Bureauís anti-fraud activities. We made several recommendations aimed at strengthening the effectiveness of these activities.

For a complete copy of Report 2001-S-49 click here.
For a copy of the associated follow-up report click here.