News: 2009 Press Release
For Release: September 8, 2009
Media Calls Only: 916-492-3566
Insurance Commissioner Poizner Announces Alarming
Increase in Suspected Auto Insurance Fraud as Economy Worsens
Commissioner Poizner today announced in Sacramento that recently compiled
Department of Insurance statistics show that financially desperate residents and
scam artists may be committing more automobile insurance fraud to cash in on
insurance money. The Department of Insurance has seen an increase in suspected
auto arson and auto theft fraud referrals last year.
"Many Californians are facing a host of financial challenges in today's
economy, but I want to remind everybody that you will only compound your
problems if you break the law and commit fraud in search of a quick fix," said
Commissioner Poizner. "Department of Insurance investigators have seen an
increase in suspected automobile arson and theft fraud cases recently, and our
enforcement experts are working hard to crack down on anyone attempting to skirt
the law for financial gain."
The Department of Insurance receives referrals of suspected fraud cases from
insurance companies, local law enforcement agencies and directly from consumers.
CDI enforcement officers carefully examine every case that is brought to the
Department's attention.
CDI saw an alarming 31 percent increase in suspected vehicle arson fraud
cases in 2008 as compared with referred cases in 2007. (In 2007, CDI received
344 referrals for suspected automobile arson; in 2008, CDI received 451
referrals for suspected automobile arson.) Overall, the Department received
almost 300 additional suspected vehicle theft and vehicle arson cases statewide
in 2008 than in 2007. CDI received approximately 200 more suspected vehicle
theft fraud case referrals in 2008 than in 2007.
While the total number of suspected fraud case referrals received by CDI for
all automobile fraud categories (including inflated damages, vandalism and hit
and run,) has remained relatively constant since 2007, suspected vehicle arson
and theft referrals have noticeably increased.
Last
month, Commissioner Poizner announced the arrest of a Sacramento-area family
for allegedly forging the theft of their vehicle in an attempt to cash in on
insurance money.
In
May, Commissioner Poizner announced the arrest of a mother and son from
Stockton and Sacramento for suspected auto insurance fraud and arson.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices
throughout the state. Close to 1900 insurance fraud-related arrests have been
made by the Department of Insurance's enforcement division since Commissioner
Poizner took office in 2007 - more arrests than have been made during any other
two year period, under any previous insurance commissioner.
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