A Statistical Study of State Insurance Fraud Bureaus

A Statistical Study of State Insurance Fraud Bureaus


A Statistical Study of State Insurance Fraud Bureaus. Washington: Coalition Against Insurance Fraud, 2001.

This study summarizes the responses to surverys of fraud bureaus. The surveys were conducted between 1995 and 2000. It includes national statistics as well as the responses from each state.

Important results include:

“Overall, for the 35 bureaus reporting 2000 budget figures, states spent approximately 43 cents per resident to combat insurance fraud—a crime that is estimated to cost each household roughly $1,000 each year.” p. 7

“Fraud bureaus with telephone hotlines received significantly more referrals than those without them. Bureaus in states with broad immunity laws also recorded significantly more referrals.”

“Bureaus with formal ties to prosecutors presented significantly more cases.”

“Nevada’s workers compensation fraud unit in the attorney general’s office recorded 126 convictions, also increasing significantly from the previous year.” This is more than twice as many convictions as the next most active Workers Comp Bureau. This is particularly interesting considering that the Assembly in Nevada is considering scrapping this unit.

New Jersey used civil actions far more than any other state fraud bureau. In 2000, New Jersey brought 813 of the approximately 1,100 actions reported.