“All people’s paying for fraud. It’s not a victimless crime,” stated Division of Insurance coverage director Ray Farmer.
Assistant Lawyer Common LaRone Washington added that tackling SC’s insurance coverage fraud advantages the state’s residents, as 10% of the price of insurance coverage premiums is straight associated to fraud – with 10% representing upwards of $1,000 in extra insurance coverage premium funds per yr.
“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 will be what each family saves,” Washington stated.
Washington additionally instructed WIS Information 10 that many of the fraudulent claims filed within the state are associated to auto accidents. He additionally gave some perspective, noting that auto accidents – each actual and fraudulent – comprised 59% of whole claims in SC in 2020. SC additionally ranks eighth within the US for staged auto accidents.
“Criminals are lots smarter than folks give them credit score for,” he stated. I feel they sort of perceive, ‘That is what we’re beginning to get away with,’ they usually sort of see the tendencies, identical to the remainder of us do, they are saying, ‘Okay, my cousin, my buddy did it and nothing occurred to them.”
In keeping with Washington, about 35 different states have comparable inter-agency partnerships to fight insurance coverage fraud. He additionally stated that North Carolina collects thousands and thousands in restitution from insurance coverage fraud circumstances per yr, and that NC has ten instances the full-time insurance coverage fraud detectives SC has. SC’s new program hopes to reflect what NC has, Washington commented.
“The experience of the Division of Insurance coverage might be utilized by the SLED brokers, after which SLED brokers will develop the case, they usually’ll give any indictments which might be applicable to be signed by the Lawyer Common,” defined Farmer.
The duty pressure is funded with roughly $2 million from the Common Meeting, and ought to be totally functioning by September 01, 2021, WIS Information 10 reported.