Washington State became the 41st state to adopt a coordinatedapproach to fraud fighting by opening a fraud bureau and adding afraud prosecutor.

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Adding an insurance fraud prosecutor ensures a steady focus oninsurance swindles, said Howard Goldblatt, director of governmentaffairs for the Coalition Against Insurance Fraud.

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The new law also clarifies that insurers can be fraud victims,allowing insurers to receive restitution from schemes. Among theother key provisions is a mandate that requires insuranceapplications and claim forms to carry language warning offraud.

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“The new fraud bureau puts swindlers on notice that Washingtonis serious about combating insurance fraud and helping keepcoverage affordable in the state,” Goldblatt said.

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The new law takes effect July 1. It will be funded by theinsurance department's operating budget. Insurers will not beassessed a fee to cover the unit's operating costs. Statescurrently without insurance fraud bureaus include Oregon, Wyoming,Wisconsin, Michigan, Illinois, Indiana, Tennessee, Alabama, RhodeIsland, Vermont, and Maine.

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