New Laws Aim To Prevent Insurance Fraud, Fake Medical Claims
July 23, 2015 6:41 PM
Minnesota is one of the fastest growing states in the country for insurance fraud, but that could change soon because of tough new laws that go into effect Aug. 1.
Last year, the number of staged crashes and fake medical claims in Minnesota rose an alarming 22 percent. That’s 3rd in the nation behind Florida and New York. Most of these criminals are Hispanics.
“There’s a marked increase in the number of staged accident rings,” Mark Kulda of the Insurance Federation of Minnesota said. “So these are professionals who have come out to the roads and they actually fake an accident.”
The most common staged highway crash? The “swoop and squat.”
“A car pulls up in front of you and all of a sudden hits the brakes and you don’t have any escape route,” Kulda said. “So you hit them in the rear end. That’s usually an indication that you could be an unwilling pawn in this insurance fraud game.”
Last year, fake crashes and medical claims in Minnesota jumped 22 percent, behind just Florida and New York.
“We saw major rings from New York, from eastern Europe, from Florida,” Tim Lynch of the Chicago-based National Insurance Crime Bureau said. “That were coming here because of a less aggressive environment and the absence of key laws.”
Starting Aug. 1, Minnesota has new powers to levy fines on criminals convicted of insurance fraud, drain their bank accounts and target medical insurance crime rings that follow a pattern found in other parts of the country.
“Hardened criminals have moved here to Minnesota to steal money out of our pockets through insurance fraud,” Kulda said.
There’s no central clearing house to exactly measure how many fraud crimes occur in Minnesota, but insurance experts estimate there were 1,700 fake car crashes or questionable medical claims in 2013.
They say insurance premiums are higher because of it — as much as $1,400 a year.
//------------///
Staged auto crashes
Many dishonest drivers
will maneuver innocent motorists into auto crashes. The cars may only suffer a
small dent, but the crooks still make large and illegal claims for fake
injuries and car damage against your auto insurance company, or their own.Often these accidents are staged by organized crime rings that bilk dozens of unsuspecting drivers.
The scams
-
Swoop and squat
A suspect vehicle suddenly swoops in front of you and jams on the brakes, causing a rear-end collision. Often the suspect car has passengers who pretend to have painful back or neck injuries, even though the collision was at low speed. The driver and passengers then make large collision and injury claims against your auto policy, for example.
-
Drive down
You're trying to merge into traffic, and a dishonest driver slows down and waves you forward. He then crashes into your car, but denies waving you into traffic and blames the accident on you. Crooked drivers may also wave you out of a parking space with the same come-on.
-
Sideswipe
Be careful if you're driving in the inner lane of a dual left-turn lane at a busy intersection. Crooks will deliberately ram you if you drift into the outer lane while turning.
-
Shady Helpers
A stranger may approach you at the crash site, or phone you right afterward. The stranger tries to badger you into getting medical treatment at a specific clinic, repairs at a specific body shop, or assistance from a specific lawyer. Be careful: It may be a setup for fraudulent medical treatment, car repairs : and bogus insurance claims. You could be headed for trouble. Think hard before getting involved with strangers like these.
The price you pay
Record blemished.
You have a costly claim on your insurance record : this could raise your auto premiums hundreds of dollars, or even mean your policy isn't renewed.Victims terrorized, killed.
Innocent drivers are terrorized, injured and even killed by these schemes. One entire family, including an infant daughter, died when their car was hit by a truck when a staged accident went wrong.Life disrupted.
Your life is disrupted as you deal with the seemingly endless details of car repairs, claim settlement, police reports, lawyers, possible lawsuits and other problems.Premiums rise.
Everyone's auto premiums rise because insurance companies pass the costs of bogus claims onto honest policyholders.Fight back
Honest citizens like you can fight back, protect yourself and put crooks like these behind bars.At the accident
• Never tailgate : allow plenty of space between your car and the car ahead of you. This will give you ample time to stop if the lead car suddenly jams on its brakes.
• Look beyond the car in front of you while driving. Apply your brakes if you see traffic slowing.
• Count how many passengers were in the other car if you're in a collision. Get their names, phone numbers and driver's license : more people may file claims than were in the car. Also get the car's license number. Note: Keep a pen and paper in your glove compartment so you're always ready.
• How do the passengers behave? Did they stand around and joke, but suddenly act "injured" when the police arrived?
• Take cell-phone pictures of the other car, the damage it received : and the passengers.
• Call the police to the scene. Get a police report with the officer's name, even for minor damage. If the police report notes just a small dent or scratch, it'll be harder for crooks to later claim serious injuries or car damage.
• Get involved if you're a witness. Watch for the warning signs of a scam, and help the honest victim with details.
After the accident
• Contact your state insurance fraud bureau if a stranger tries to steer you to an unknown body shop, doctor, chiropractor or lawyer. Give officials the names, addresses and phone numbers of these providers.• Only see medical and legal providers you know and trust, or at least ones that are recommended by people you trust. Never let yourself be suckered by a stranger off the streets.
• Keep careful records of your medical treatments : dates, treatments given, and diagnoses. Compare your records against the statements you receive to make sure the bill wasn't padded or treatments outright fabricated.
• Check out your doctor or lawyer. Contact your state medical licensing board to ensure your doctor is licensed and has no complaints. Contact the American Bar Association to see if your lawyer has been disciplined for unethical behavior.
• Call the National Insurance Crime Bureau if you suspect a scam. The toll-free number is 1-800-835-6422 (24 hours a day, seven days a week). Give license plate number, location of the accident, people involved, why you think this was a fraud, and as many other details as possible.