The NICB is a non-profit organization that collaborates with insurance companies and law enforcement to help identify, detect and prosecute insurance criminals. The NICB website is an excellent source of information. To help combat the growing problem of insurance fraud, the NAIC created a uniform fraud reporting system whereby consumers and insurance departments can report suspected fraud electronically to the appropriate insurance department. Insurance fraud can be classified into different categories, from people who commit fraud against consumers to people who commit fraud against insurance companies.
As a licensed insurance agent or company, you are legally required to report any suspected fraud to the Criminal Investigations Division of the Department of Insurance. Insurance fraud on at least some lines of insurance is a crime in every state and in the District of Columbia. The insurance experience and consumer attitudes toward insurance fraud (Journal of Insurance Regulation, 200). Report any suspected insurance fraud to the Criminal Investigations Division of the Department of Insurance.
To address specific issues related to criminal activity, 42 states, in addition to the District of Columbia, have insurance fraud agencies that investigate allegations of illegal insurance activities. The CAIF is a national alliance of consumer groups, public interest organizations, government agencies and insurers dedicated to preventing insurance fraud.
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