The Lawyer Normal’s Workplace, the Division of Insurance coverage, and SLED are working collectively.
Insurance coverage fraud in South Carolina has reached the purpose that three state businesses – the Lawyer Normal’s Workplace, the Division of Insurance coverage, and SLED – have come collectively to create a process pressure for the aim of cracking down on instances.
South Carolina has the seventeenth highest fee of complaints relating to fraudulent claims within the US.
Nationwide Insurance coverage Crime Bureau (NICB) knowledge reveals that South Carolina is in seventeenth place within the nation for the quantity of insurance coverage fraud claims filed.
“All people’s paying for fraud. It’s not a victimless crime,” stated Ray Farmer.
By stopping the scammers of their tracks, the businesses count on to supply measurable, significant advantages for residents of the state. It’s presently estimated that 10 % of the price of insurance coverage premiums is instantly associated to paying for fraudulent claims. Due to this fact, in line with Lawyer Normal LaRone Washington, lowering meaning lowering premiums. He identified that 10 % of premiums equates to as a lot as $1,000 per yr in added premiums.
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“If insurance coverage fraud in South Carolina didn’t exist, it’s the equal of if somebody at Christmas gave you a test for $1,000, and that may be what each family saves,” stated Washington.
Nearly all of the fraudulent declare should do with auto collisions. They comprised 59 % of the entire claims filed in South Carolina final yr. The state presently ranks in eighth place within the nation for staged automobile collisions. Fraudulent claims are a considerable difficulty in South Carolina, stated Washington.
“It is a big drawback these developments are going up. Of us are discovering that it’s rewarding enterprise to do,” stated Washington. “That is large enterprise, so we have to commit actual assets to combating it and the legislature actually took to it.”
Washington went on to explain a variety of various ways in which criminals conduct insurance coverage fraud via staged auto accidents. “Criminals are quite a bit smarter than individuals give them credit score for,” he stated. The brand new process pressure is receiving $2 million in funding from the Normal Meeting. This might be used for buying extra assets, to conduct investigations and to prosecute instances.