Mark
Mandell, Esq.
Michigan
Secretary of State (SOS), Ruth Johnson, convened a 56 member task force
dedicated to addressing insurance fraud in the state. The task force and the
SOS recently announced their 17 recommendations.
The
recommendations come amid the announcement that the SOS uncovered that a
whopping 16% of the documents filed
by motorists from 2013-2014 were fake.
And you need proof of insurance to receive a license plate in Michigan.
With
16% of documents being fake, one has to ask how that number got so high.
Pete
Kuhnmuench, executive director of the Insurance Institute of Michigan, said he
believes the high cost of insurance is driving the search for phony insurance
coverage. He recommended a $3 fee to ramp up enforcement efforts against fraud.
The SOS task force, however, did not address that.
Secretary
of State Johnson claims the problem is costing Michigan motorists around $220
million per year – which she says is a conservative figure. That's because if a
driver with fake insurance coverage gets in an accident, the other drive must
pick up the tab for those with no coverage.
Johnson
said all sort of crooks are in the insurance fraud game, including a lady working
out of a church netting some $30,000 a month to the sophisticated Internet fraud
artists who produce documents that look real but are not.
The
state police, local prosecutors and the state insurance director are all in on
fighting back and the SOS has reported that some reforms have already cut the
bogus percentage in half.
The
task force’s recommendations also include: streamlining prosecution of
offenders, assisting law enforcement in verifying insurance during traffic
stops, cracking down on unlicensed insurance agents, and establishing a new
“fraud commission.”
If you feel like you are a victim of
insurance fraud, contact experienced Attorney Mark Mandell with Fausone Bohn,
LLP, at (248) 380-0000. Mark has over a decade of experience fighting for his
clients’ rights.
No comments:
Post a Comment