From the February 2012 issue of Claims Magazine •Subscribe!

Allstate’s Latest Fraud Suit Targets 16 New Yorkers

Sixteen New Yorkers are the targets of the latest fraud lawsuit filed in the state by Allstate Insurance.

Allstate is seeking to get back more than $1.1 million from what, according to the company, was its ninth insurance fraud lawsuit in 2011. The suit was filed in Federal District Court on Dec. 30.

The latest suit names individuals involved in the alleged illegal ownership of professional medical corporations, and alleges that the defendants submitted fraudulent claims for services that were done by independent contractors—a violation of the state’s no-fault auto-insurance law.

Allstate and other insurers, as well as state leaders, are currently seeking to reform the New York no-fault law. The system is plagued by fraud, which costs the state’s residents millions of dollars each year in what amounts to what the insurance industry has coined a “fraud tax.”

The Northbrook, Ill.-based insurer has sued to recover more than $185 million in fraud-related damages in New York since 2003.

In its latest court filing, Allstate claims a chiropractor and others supposedly controlled two medical corporations allegedly owned by a medical doctor, and used these entities to submit fraudulent claims to the insurers. Four others are named as defendants for their alleged roles in being part of this scheme.

Comments

Resource Center

View All »

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

Forensic Insider eNewsletter

Reduce litigation expenses and enhance investigative acumen with forensic news & commentary. Sign Up Now!

Advertisement. Closing in 15 seconds.