Indiana Insurance Commissioner Jim Atterholt said his department is making progress in creating an insurance fraud unit and it is a priority issue for Gov. Mitch Daniels.

He said a task force is at work on the project comprised of law enforcement officials, industry representatives, and consumers whose purpose is to design effective methods for building the unit and funding options to finance it..

The aim, he said, is to prepare and later present a draft to the Indiana General Assembly for the upcoming session in January 2006.

Commissioner Atterholt told National Underwriter that at the previous legislative session legislation had been introduced that stiffened penalties for insurance fraud. He said, "Indiana is one of ten states that does not have an anti-fraud unit and that is something we'd like to change."

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