The South Carolina Division of Insurance coverage (SCDOI) has entered right into a Memorandum of Understanding (MOU) with the South Carolina Legislation Enforcement Division (SLED) to switch insurance coverage fraud enforcement to the SCDOI.
Each companies have additionally introduced that the South Carolina Basic Meeting has accepted $2 million in funding for the investigation and prosecution of insurance coverage fraud as a part of the finances for the 2021-2022 fiscal yr. This funding represents a 400% enhance in anti-insurance fraud efforts in comparison with present ranges, the SCDOI famous.
Underneath the MOU, the SCDOI will examine and prosecute fraud within the insurance coverage business using SLED brokers. As well as, indictments can be introduced to the South Carolina Legal professional Basic’s Workplace for approval and the Legal professional Basic retains prosecutorial authority.
“Insurance coverage fraud is just not a victimless crime. It exploits sources and drains our system whereas elevating premiums for all our residents,” stated South Carolina Legal professional Basic Alan Wilson.
The change represents “years of labor” to extend funding to analyze and prosecute insurance coverage fraud, the SCDOI stated in a press release. Previous to the change, the SC Legal professional Basic’s Workplace had a $400,000 insurance coverage fraud finances and solely 4 investigators. By comparability, North Carolina has a finances of $5.9 million and greater than 40 full-time investigators.
Citing information from the Legal professional Basic’s 2020 Insurance coverage Fraud Report, the SCDOI stated that South Carolina ranks eighth in staged automobile accident complaints, and seventeenth for complaints of suspected insurance coverage fraud.