New Jersey Manufacturers Insurance Group announced that a NewJersey chiropractor has agreed to pay the West Trenton, N.J.-basedinsurer $1 million for conducting tests using unauthorizedtechnicians, among them a 15-year-old boy.

The carrier said the settlement came after it sued Dr. SeanNisivoccia for fraudulent nerve conduction velocity tests that wereconducted at his chiropractic offices in East Orange, N.J. Thetests were done on more than 60 individuals with auto accidentclaims from 1999 to late 2004.

The company said it brought an action against Dr. Nisivoccia in2005 after the insurer's Special Investigations Unit discovered heordered the test conducted by technicians, one of whom was ateenager. The discovery spurred an in-depth review by NJM of allrelevant patient files, the company said.

NJM said that in order to administer the tests, which are usedto ascertain whether nerve damage has occurred, state regulationrequires a chiropractor to undergo formal training and obtain acertificate of competency. Records from the New Jersey Board ofChiropractic Examiners indicated that Dr. Nisivoccia did not earnan NCV certificate until December 2004, despite submitting billsfor NCV tests since 1999.

NJM argued that because the tests themselves were illegal, alltreatment expenses allegedly justified by the tests werefraudulently billed in violation of the New Jersey Insurance FraudPrevention Act and should be recovered.

NJM's suit named another chiropractor and three doctors whoallegedly referred patients to Dr. Nisivoccia for the illegaltesting. NJM has provided evidence it obtained with regard to thecase to the appropriate medical boards and the Office of theInsurance Fraud Prosecutor for further consideration.

"The Nisivoccia settlement will recover valuable funds for ourpolicyholders and is a great accomplishment for our SIU," saidAnthony G. Dickson, president and chief executive officer ofNJM.

He added that "medical fraud involves more than just money.While most medical practitioners have the utmost concern for thewell-being of their patients, dishonest doctors may take risks thatcan endanger their patients. Doctors who are proven to be dishonestshould lose their licenses, be prosecuted to the fullest extent ofthe law and be sent to jail."