Report: Calif. Accounts for One-Fifth of Questionable Claims

Insurance Fraud CaliforniaThe annual number of insurance claims that coverage providers flag as having possible elements of fraud has been on the rise in California in recent years, according to the National Insurance Crime Bureau (NICB).

The NICB recently released numbers quantifying the coverage fraud issue in the state. They show that total number of claims referred to the NICB because of the appearance of fraud rose 9.4 percent between 2008 and 2010.

Growth in the number of referred claims that were auto-related outpaced the growth in questionable claims reports overall. The number of questionable California auto insurance claims increased from 9,605 in 2008 to 11,317 in 2010 — an 18 percent jump.

Areas with the largest questionable-claim counts in the state in 2010 were Los Angeles and San Francisco.

Los Angeles accounted for 11.6 percent of all questionable claims in 2010.

According to the NICB, 20 percent of the questionable claims reported across the country originate in California.

The NICB is a not-for-profit organization that is funded by member insurance companies and investigates claims that members identify as having possible elements of fraud.

The organization also recently released reports specific to Florida and New York.


About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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