New York State
Insurance Department


ISSUED: 3/20/2000

FOR IMMEDIATE RELEASE

LEVIN ANNOUNCES ELECTRONIC FRAUD REPORTING SYSTEM

            Superintendent of Insurance Neil D. Levin today announced that the Department has launched an electronic system to streamline insurance fraud reporting by insurance companies. Insurers, by using the IBM Global Network, can access the Department’s system, complete the report form electronically, and immediately transmit the information to the Frauds Bureau.

            "This innovative system will allow insurers to submit reports of suspected fraud to the Frauds Bureau in real time, while holding down postage and personnel costs," Levin said. "This is smart use of technology – making fraud reporting more efficient and effective."

            The new system has a number of features that will enhance the investigation of suspected fraud:

  • Allows for more thorough and complete information on each case;

  • Details instructions for reporting correctly which results in better reporting;

  • Lists of prior fraud allegations can be viewed to track reporting patterns and trends;

  • Includes cross references to other reports that share similar information in the database; and

  • Provides access to details of cross-referenced reports which includes the names and telephone numbers of contacts at other companies on the cross-reference list.

            The Department, in Circular Letter #10, informed the insurance industry that the system is now available to all insurers. In March 1998, the Frauds Bureau ran a pilot program, and after one year of the pilot, the system was available to insurers that wanted to take advantage of the system. Currently, 38 insurance company Special Investigations Units are reporting online.

            "Prompt reporting plays an important role in the successful investigation of insurance fraud," Levin said. "I encourage all insurers to take advantage of this convenient and user-friendly method of reporting fraud."


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