Antifraud (D) Task Force
September 30, 2007
The Antifraud (D) Task Force and its working groups met in joint session on September 30, 2007. The task force adopted the Automobile Insurance Fraud Guidelines and the 2008 Antifraud (D) Task Force Charges with recommended changes.
The Producer, Company, Unauthorized Entities and Unlawful Activity Working Group
During this meeting, the Working Group:
- Distributed the final survey results on how states identify and address unauthorized activity and reviewed the results. Twelve states of the task force responded to the survey with results indicated the new for the redrafting and updating of the Unauthorized Entities Manual.
- Distributed the first re-drafted of the Unauthorized Entities Manual. Sections II through VI were reviewed by the working group members and comments were received. The working group decided to open the draft changes to the manual for a 30 day comment period. The draft will be posted on the NAIC web-site and any comments should be sent to Alan Haskins, NAIC Antifraud Coordinator.
The Federal and International Enforcement Coordination Working Group
During this meeting, the Working Group:
- Distributed the draft bylaws and work plan for the future development of the International Association of Insurance Fraud Agencies (IAIFA). The working group noted that the NAIC Antifraud (D) Task Force voted unanimous for the new bylaws and work plan of the IAIFA.
- The working group and task force received a report from Senior Issues (B) Task Force on sales and marketing practices of Medicare Advantage and Medicare Part D prescription drug plans.
- The working group and task force received reports Jason Richards and Scott Sommerville with the FBI and Art McShane with the Postal Inspection Services.
TheAntifraud Liaison Working Group
During this meeting, the Working Group:
- Distributed the final draft of the NAIC Automobile Insurance Fraud Guidelines and project history. After receiving comment from members and audience attendees and with no objections the working group and task force adopted the guidelines.
- Howard Goldblatt with the Coalition Against Insurance Fraud provided the working group with a state legislative update. Mr. Goldblatt pointed out several laws passed in NY, DE, NH, and SC. The Coalition will focus 2008 legislative effort in NY, CA, MI, UT and CT.
TheAntifraud Training and Seminar Working Group
During this meeting, the Working Group:
- Distributed the evaluation report for the 2007 NAIC Insurance Fraud Training Seminar that was held July 23-24, 2007, at the Hyatt Regency Islandia in San Diego, CA. Topics addressed were state fraud prevention and awareness programs, conducting efficient criminal insurance fraud investigations, current trends in automobile insurance fraud crimes, clinic inspections, several cases studies, and how to prosecute insurance fraud cases.
- Discussed topics for the new 2008 Basic Training for Insurance Fraud Investigator that will be a regulator only training program held at the NAIC head quarters in Kansas City either January or February.
The Information Sharing and Technology Working Group
During this meeting, the Working Group:
- Discussed the NAIC budget proposal for enhancement to the NAIC On-Line Fraud Reporting System (OFRS) and database search capabilities whereby allowing industry to report suspected fraud referrals by group code as well as NAIC company code (co-code). Members of the working group attended the Information Resources Management (H) Committee meeting and answered all their questions about the enhancement.
TheNAIC/NASAA Enforcement Coordination Working Group
During this meeting, the Working Group:
- Distributed the evaluation report for the 2007 NAIC/NASAA Joint Training Seminar that was held May 31, and June 1, 2007, in conjunction with the 2007 NAIC Summer National Meeting. Topics addressed at the training seminar were Introduction to Law and Structure of Securities and Insurance Regulation, Stranger Originated Life Insurance, Variable Annuities, Life Settlements, Senior Issues, Suitability and a roundtable discussion.
- Discussed the merger between the NASD and the New York Stock Exchange (NYSE) creating the Financial Regulatory Authority (FINRA).
Action Items:
1. Automobile Insurance Fraud Guidelines were adopted.
2. 2008 Antifraud (D) Task Force Charges were adopted.