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					Pennsylvania Fraud Authority Sees Increase in Referrals
MECHANICSBURG, Pa. (BestWire)--Referrals from the insurance industry to the
Pennsylvania Insurance Fraud Prevention Authority increased nearly 25% and those
transferred from law enforcement agencies were up 80% during the first half of this year.

The IFPA said there was a 18.5% jump in referrals involving automobile insurance and
a 53.7% increase in health care-related fraud referrals but there was also a decline in
workers' compensation and homeowners insurance of 8.4% and 16.7%, said the report.

Through June about 210 arrests were made -- of which there were 147 convictions.
Offenders were ordered to pay a total of $137,732 in fines and penalties and more than
$2.4 million in restitution. Auto insurance-related crimes accounted for 66% of arrests.
The top act of attempted fraud was falsely reporting a vehicle stolen, IFPA said.

In its report, the IFPA includes true stories to illustrate the types of fraud people commit.
In April, a Pittsburgh man was arrested after falsely reporting to three different
insurance companies that he had cut his mouth on either plastic or metal in food at
several different restaurants. A pizzeria owner, behind in his rent, in Lanesboro, Pa.,
was arrested and charged with arson after allegedly leaving the ovens on. An Upper
Darby, Pa. man was arrested and charged with falsely reporting his car stolen. The man
allegedly set the car on fire himself. A doctor with a home practice in Lititz, Pa. allegedly
billed both public and private health insurance plans millions of dollars for sleep studies
that he falsely claimed he had conducted on infants, IFPA reported.

In 2008, the top five writers of private-passenger auto in Pennsylvania, according to A.M.
Best Co. state/line product information based on direct premiums written, were: State
Farm Group, with an 19% market share; Allstate Insurance Group, with 13.8%; Erie
Insurance Group, with 13%; Nationwide Group, with 11.1%; and Progressive Insurance
Group, with 7.1%.

In 2008, the top five writers of homeowners multiperil in Pennsylvania, according to A.M.
Best Co. state/line product information based on direct premiums written, were: State
Farm Group, with an 18.7% market share; Allstate Insurance Group, with 16.2%; Erie
Insurance Group, with 12.6%; Nationwide Group, with 10.2%; and Travelers Group, with
7.9%.

				
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posted:6/25/2011
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