Insurers To Fund A Fraud Prosecutor In Miami

By Daniel Hays

NU Online News Service, Sept. 29, 4:30 p.m. EDT?An underwriting pool in Florida plans to pay the salary of a prosecutor assigned to pursue auto injury fraud cases in the Miami area, an insurance trade group said.

The decision by the Joint Underwriting Association to provide the funds was noted by the National Association of Independent Insurers based in Des Plaines, Ill.

Tammie Torres, a spokesperson for the Florida Insurance Department, said that "a lot of things have to be worked out" and full details of the plan would be announced Friday.

NAII praised the JUA decision to provide $150,000 for the position at a time when state expenditures have been crimped by budget problems.

James Taylor, southeastern regional manager for NAII, said the move was a "significant step toward serious auto insurance reform in Florida. The insurance industry has long awaited this move, and looks forward to working closely with the prosecutor to crack down on insurance crime."

He noted that it has been difficult to secure prosecutions because district attorneys and prosecutors have focused their attention on violent offenders.

He noted that the Florida legislature has passed a variety of laws making it easier for companies and individuals to report fraud and those legal changes make it easier to make a [insurance fraud] case."

With the state facing a significant budget shortfall, "the JUA is willing to fund position in the Division of Insurance Fraud," he noted.

According to NAII, the new prosecutor and an assistant will have offices in Dad County State's Attorney Katherine Fernandez-Rundel's office. Ms. Torres said, however, that where the prosecutor would be housed and who prosecutor and assistant would report to was being worked out.

NAII said it is estimated that 80 percent of the time there is an element of fraud in Florida personal injury protection claims.

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Insurers To Fund A Fraud Prosecutor In Miami

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