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Most industries are feeling the pinch of the economic downturn, so it’s no surprise that Oklahoma has fired some of its fraud investigators. What is surprising is the explanation for doing so, which essentially claims that investigating fraud is not the business of the state.

According to the Coalition Against Insurance Fraud (CAIF) blog post written by Dennis Jay, six of nine investigators were fired on January 24, 2011. Randy Brogdon, the deputy commissioner of insurance who recommended the downsizing, was quoted in the local newspaper, NewsOK, as saying “The companies need to handle their own claims. Investigating policyholders is not a function of the Insurance Department.”

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