NCJ Number
205466
Date Published
May 2001
Length
60 pages
Annotation
This report provides an overview of the activities and outcomes of 41 State insurance fraud bureaus from 1995 through 2000.
Abstract
In order to achieve a meaningful understanding of the general activities, responsibilities, and structure of insurance fraud bureaus around the country, surveys were sent to 46 bureaus in States representing more than 78 percent of the United States population; 41 surveys were completed and returned. The survey asked questions pertaining to the structure of the bureaus, budgets, numbers of employees, tenure of Directors, and information regarding insurance fraud investigations. Findings indicate that six new fraud bureaus have been established since 1997 in South Dakota, Virginia, New Mexico, Iowa, Louisiana, and Mississippi. States spent approximately $0.43 per resident for fraud-fighting efforts in 2000, totaling on average more than $100 million annually. A total of 1,240 people worked in the 41 fraud bureaus in 2000, an increase of 7 percent from 1999. Generally, directors of fraud bureaus in 2000 had more than 4 years of service in the industry, up from 2.9 years in 1997. Almost 89,000 referrals were received by fraud bureaus in 2000, representing a 5 percent increase from 1999. Fraud bureaus with telephone hotlines received significantly more referrals than those without hotlines. During 2000, over 19,000 cases were reported as open by 35 fraud bureaus, averaging about 21 cases per investigator. Cases prepared for prosecution in 2000 totaled 3,998, more than double the amount of cases prepared for prosecution in 1995. Criminal convictions won by fraud bureaus totaled 2,123 in 2000; also more than double the 1995 conviction rate. Civil actions pursued by fraud bureaus more than tripled between 1995 and 2000. Appendices present the survey instrument, a list of the participating fraud bureaus, and a snapshot portrait of each fraud bureau surveyed for the study. Appendix