Activities to Combat Automobile Insurance Fraud (Follow-Up Report) The Insurance Frauds Bureau was established by the State Legislature in 1981. In audit report 2001-S-49, 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, and when we followed up on these recommendations, we found that some had been implemented, but additional actions were needed if the recommendations were to be fully implemented.
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