CPCU Society and National Insurance Crime Bureau Join Together to Educate Consumers During Insurance Fraud Prevention Week.

Business Editors

WASHINGTON--(BUSINESS WIRE)--June 20, 2001

In an effort to educate consumers nationwide about insurance fraud and the price we all pay for these crimes, the Chartered Property Casualty Underwriters (CPCU) Society and National Insurance Crime Bureau (NICB) today released prevention tips that may help Americans avoid becoming fraud victims.

This joint education effort is part of the NICB's Insurance Fraud Prevention Week, June 18 - 22, 2001, designed to focus insurance industry and consumer attention on fraud's scope and solutions to these crimes.

The insurance industry estimates that fraud costs consumers $30 billion annually, or approximately $200 - $300 per U.S. household in extra insurance premiums. It is the second most costly white-collar crime in America behind tax evasion, with industry studies showing 10 percent or more of property/casualty insurance claims are fraudulent.

The NICB's Insurance Fraud Prevention Week includes a two-day symposium of insurance industry and law enforcement leaders in Washington, DC, to discuss broad-based solutions to fraud. Additional activities include the nationwide grassroots communication program with the CPCU Society to raise consumer awareness about fraud's magnitude and offer prevention suggestions.

"Many people incorrectly believe insurance fraud doesn't hurt anyone because insurance companies pay for it," says Bruce D. Williams, CPCU Society president. "We all pay for these crimes because a portion of our insurance premiums is used to offset fraud's cost. The bottom line is that insurance fraud is a crime and the people who commit it cheat all of us."

Throughout Insurance Fraud Prevention Week, the CPCU Society's 153 chapters are offering basic crime prevention education to consumers. For additional prevention tips and information about insurance fraud, consumers can access the CPCU Society-NICB website: www.stopinsurancecheats.com.

Common Fraud Scams Affecting Drivers

"Consumers are frequently victimized by fraud criminals while driving. They need to stay especially vigilant to avoid becoming a victim while in their vehicle," says Williams.

The NICB-CPCU Society prevention suggestions include:

-- Be particularly careful when turning into a lane that allows for two
vehicles to turn left simultaneously. People who intentionally cause collisions
prey on cars that cross into the center line by sideswiping the victim's car.

-- If you are in a collision, count the number of passengers in the other
vehicle. If possible, obtain their names, telephone numbers, and driver's
license numbers. Oftentimes, more people will file claims than were actually in
a car.

-- Call the police to an accident scene and get a police report with the police
officer's name, even if the damage is negligible. If the report describes
damage to the claimant's car as minor, it will be difficult for a criminal to
add more damage to the car and attempt to collect a larger claim.

-- Carry a disposable camera in your glove compartment. Take as many pictures
of the other car and its passengers as possible.

Unscrupulous medical and legal practitioners oftentimes become involved in perpetrating fraud by filing false claims and lawsuits following a vehicle or property accident. To avoid these situations, the NICB and CPCU Society recommend you:

-- Be wary of physicians who insist you file a personal injury

claim after an accident, even if you are not hurt.

-- Beware of attorneys who claim their client was seriously

injured on your property, especially if you have no prior

knowledge of the accident or have never seen the claimant. Con

artists often target small businesses and franchise operations

with phony injury schemes.

If you would like additional tips on how you can avoid being a victim of insurance fraud, write the CPCU Society for a free color brochure. Send a SASE to: The CPCU Society, Department Fraud, PO Box 3009, Malvern, PA 19355. Or click on this site to download a pdf file of the brochure: http://www.stopinsurancecheats.org/assets/fraudbro.pdf.

The CPCU Society is a community of more than 30,000 credentialed insurance professionals in 153 chapters who promote ethical behavior and continuing education. The National Insurance Crime Bureau is a not-for-profit organization whose mission is to combat fraud and vehicle theft.

The National Insurance Crime Bureau is a non-profit organization supported by approximately 1,000 insurance and self-insured companies solely dedicated to fighting insurance fraud and vehicle theft.