NAIC Announces On-line Fraud Reporting System
From NAIC Spotlight
April 11, 2005
A major initiative of the NAIC Executive Task Force on Broker Activities, the NAIC has launched an on-line insurance fraud reporting system, available to consumers who wish to report suspected fraudulent activity.
The system is available via the NAIC Web site at "https://external-apps.naic.org/fraud/ofrs_entry.jsp" and allows consumers to provide detailed information anonymously. The system is accessible from two links on the NAIC home page: under the "New and Noteworthy" section and through the Consumer Information Source.
Formed by the NAIC last fall, the Task Force developed a three-part action plan to address alleged criminal misconduct and violations of existing insurance laws involving insurance companies and insurance brokers. These components include the implementation of a new on-line fraud reporting system; creating more transparency for insurance consumers through better disclosure of broker compensation arrangements; and coordination of state insurance departmentsí efforts to address improper conduct by brokers and insurers through investigation and collection of relevant information.
[FBIC Note To The NAIC In Response: It is nearly if not completely impossible for a consumer to know if a broker is involved in suspected fraudulent activity that is unless the broker and the complicit insurer involved want to report themselves. Accordingly, investigating and finding fraudulent insurer activities is supposed to be the job of each state's Department of Insurance (DOI) Regulatory Authority (... and not the states Attorneys General). Besides why bother when such actions have been reported in the past, such as in 1998 when it was reported to the NY State DOI and they did nothing. Click here to reference the supporting article.