Calif. Auto Insurance Cos. To Get Over $100,000 from Attorney
The Los Angeles-area attorney is said to have helped defraud car insurers of hundreds of thousands of dollars.
(EMAILWIRE.COM, August 24, 2011 ) California Insurance Commissioner Dave Jones announced Friday that a Los Angeles attorney has been sentenced to five years of probation and ordered to pay nearly $353,000 in restitution for submitting fraudulent auto coverage claims.
Authorities say Susan Ragos Chung was part of a crime ring headquartered in the San Francisco area through which more than 90 people staged vehicle accidents and bilked insurers for nonexistent medical coverage and other costs.
Jones and other officials say fraudulent auto coverage claims mean higher premiums for all policyholders because insurers must increase their rates to cover losses due to crime. That can make it a challenge to find low down payment auto insurance policies.
“Criminal acts like this cost consumers more money for auto (coverage) in an already strained economy,” Jones said in a statement.
Investigating fraudulent claims is among the many duties carried out by state regulatory agencies nationwide. Regulators across the country oversee coverage providers, help resolve disputes between companies and policyholders and monitor complaints against specific companies.
The National Insurance Crime Bureau (NICB) last year fielded more than 91,000 “questionable claims” referred by insurers for review and investigation of possible fraud. More than two-thirds of those cases involved personal auto coverage.
Runaway fraud costs are hitting some states particularly hard.
In Florida—where the Insurance Information Institute estimates coverage providers are forced to pay 70 percent more each year to keep up with runaway fraud costs—regulators and legislators have teamed up in hopes of writing legislation to address the problem.
Source: http://www.myfloridacfo.com/ica/news/PrsRls08-11-2011.asp
The NICB reported earlier this year that questionable claims reported by Florida insurers increased by 42 percent from 2008 to 2010, with 84 percent of those claims involving auto coverage.
California regulators say Chung submitted bogus claims on behalf of multiple people from 2003 to 2007.
Authorities say the crime ring used about 100 participants to stage accidents and then file fraudulent claims for bodily injury.
To read more about this and other coverage issues, go to http://www.onlineautoinsurance.com/pay-monthly/car-insurance-no-down-payment/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.
Authorities say Susan Ragos Chung was part of a crime ring headquartered in the San Francisco area through which more than 90 people staged vehicle accidents and bilked insurers for nonexistent medical coverage and other costs.
Jones and other officials say fraudulent auto coverage claims mean higher premiums for all policyholders because insurers must increase their rates to cover losses due to crime. That can make it a challenge to find low down payment auto insurance policies.
“Criminal acts like this cost consumers more money for auto (coverage) in an already strained economy,” Jones said in a statement.
Investigating fraudulent claims is among the many duties carried out by state regulatory agencies nationwide. Regulators across the country oversee coverage providers, help resolve disputes between companies and policyholders and monitor complaints against specific companies.
The National Insurance Crime Bureau (NICB) last year fielded more than 91,000 “questionable claims” referred by insurers for review and investigation of possible fraud. More than two-thirds of those cases involved personal auto coverage.
Runaway fraud costs are hitting some states particularly hard.
In Florida—where the Insurance Information Institute estimates coverage providers are forced to pay 70 percent more each year to keep up with runaway fraud costs—regulators and legislators have teamed up in hopes of writing legislation to address the problem.
Source: http://www.myfloridacfo.com/ica/news/PrsRls08-11-2011.asp
The NICB reported earlier this year that questionable claims reported by Florida insurers increased by 42 percent from 2008 to 2010, with 84 percent of those claims involving auto coverage.
California regulators say Chung submitted bogus claims on behalf of multiple people from 2003 to 2007.
Authorities say the crime ring used about 100 participants to stage accidents and then file fraudulent claims for bodily injury.
To read more about this and other coverage issues, go to http://www.onlineautoinsurance.com/pay-monthly/car-insurance-no-down-payment/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.
Contact Information:
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-784-2476
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-784-2476
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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