The Maryland Insurance Administration Continues Efforts to Stop Insurance Fraud

In the first half of 2018, Maryland Insurance Administration (MIA) investigations led to the criminal prosecution of 12 people for committing insurance fraud and the issuance of 25 civil fraud orders. These enforcement efforts resulted in a combined total of $68,092 in fines and penalties, as well as $146,400 in restitution to insurance carriers impacted by the fraudulent activity.

According to an MIA press release, insurance fraud is one of the costliest crimes in the country and costs Maryland consumers money in the form of higher premiums.

“The MIA’s efforts to root out fraud have resulted in fines, penalties and restitution in excess of $2 million over the past several years,” said Maryland Insurance Commissioner Al Redmer Jr. in the release. “Our investigations have led to criminal convictions and jail time as well.”

In October 2012, the MIA was granted authority to issue insurance fraud civil orders. Since 2013, the MIA has sanctioned 198 individuals with committing insurance fraud in Maryland. Penalties totaling more than $821,648 have been issued, and those individuals were also ordered to pay $269,552 in restitution.

Since 2011, the Insurance Administration has investigated 371 fraud cases which were prosecuted through the offices of local State’s Attorneys and the Attorney General. Twelve cases resulted in criminal convictions, jail time and fines totaling $26,272. The courts also ordered the defendants to pay more than $1,077,373 in restitution to the insurance carriers and individuals impacted by the fraudulent activity.

The Insurance Administration is an independent state agency charged with enforcing insurance laws and regulations. Its Fraud Division, staffed by former law enforcement officers and prosecutors, investigates reports of fraudulent activity related to insurance matters.

Source: The Maryland Insurance Administration

Topics Fraud Maryland