Search
 

Florida CFO Announces Effort to Fight Work Comp Fraud

Florida has established a working group to review the practices of some in the check cashing services industry involved in workers’ compensation premium fraud.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Top Florida Workers' Comp Insurers

At an Aug. 2 Cabinet meeting, Florida CFO Jeff Atwater announced the creation of a working group to review the practices of some in the check cashing services industry involved in workers’ compensation premium fraud.

According to Atwater, organized criminal enterprises set up shell or fake companies and obtain a minimal workers’ compensation insurance policy. Uninsured contractors pay a fee to use the shell policy and then present a copy of the shell certificate of insurance to a general contractor. The fraudsters often get the job because they are able to underbid honest contractors by removing the cost of workers’ compensation insurance from their expenses. The schemers use money service businesses to cash the checks made out to the shell company.

Dig Deeper

Recommended Stories

Insights for lowering UBI-claim risk

Nathan George |

Telematics can jump-start the change process by providing insurers with an accurate picture of a driver’s personal driving behaviors.

Understanding the value of diversity

Jennie Philip |

Weaving diversity and inclusion into the fabric of claims provides a richer context for making payment decisions.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.