Note: Workers’ Compensation Insurance is a type of “property and casualty” business insurance required in all states, except Texas where an employer may opt out. It is referred to as a “line” of insurance coverage and is purchased from an insurance agent or broker.
Weekly Fraud Blotter from Lexis/Nexis
Temptation to Fraud: A Double Whammy
“Insurance agents who play games with their customers’ money and trust will ultimately lose. If you decide to break the law, CDI investigative teams will find you and help prosecute you.” Insurance Commissioner Steve Poizner said when announcing the prosecution of a local insurance agent who pled quilty to two counts of felony grand theft.
A CDI investigation found, the owner-agent sold various types of insurance policies, including automobile, property, general liability and workers’ compensation to individuals and businesses allegedly stole insurance premiums, in excess of $8,300, from four business owners, failed to send the premiums to insurance companies and issued bogus insurance certificates. She was arrested and released on bail.
While out on bail, the agent continued to collect premiums from additional victims of an additional $6,800 and again failed to place insurance coverage. Total premiums collected on both counts total in excess of $20,000.
The Department of Insurance revoked the defendant’s insurance licens and barred her from working in the insurance business.
Close to 1,900 insurance fraud-related arrests have were by the Department of Insurance’s enforcement division since Commissioner Poizner took office in 2007 – more arrests than were made during any other two- year period, under any previous insurance commissioner. (workersxzcompxzkit)
Reposted with Permission Visit LexisNexis for more information and full reports.
The latest workers’ comp fraud blotter see http://law.lexisnexis.com/practiceareas/Workers-Compensation-Law-Blog/workers-compensation-fraud-/Workers-Comp-Fraud-Blotter-9182009—Recent-Arrests-Charges–Convictions
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