2012 Consumer Guide to Automobile Insurance
What About Fraud?
It is estimated that more than a quarter or as much as one-third of all auto insurance claims contain some element of fraud, resulting in higher insurance premiums. Under the Insurance Law, licensees of the Department of Financial Services (i.e., insurers, agents, brokers, adjusters) are required to report any suspected fraudulent acts to the Department's Financial Fraud & Consumer Protection Division. Through an investigative and administrative process, the Department can fine any person involved in the fraud up to $5,000, plus the value of the fraudulent claim, in addition to any criminal penalties that a court may impose.
If you have reason to believe that there has been an insurance fraud, you are encouraged to report it to the Financial Fraud & Consumer Protection Division at 1-888-FRAUDNY (1-888-372-8369) or by mail to:
Financial Fraud & Consumer Protection
New York State Department of Financial Services
New York, New York 10004-2319
You may also visit the Department Web site (www.dfs.ny.gov) for more information on the impact of insurance fraud on the premiums you pay. The Web site contains instructions on how to report fraud to the Department by downloading the Suspected Fraud Report Form and lists the addresses and telephone numbers of the Department Financial Fraud & Consumer Protection Division offices located throughout the state.