Antifraud (D) Task Force
Antifraud (D) Task Force Page
Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index

The Antifraud (D) Task Force and its working groups met in joint session June 14, 2009.

During this meeting, the Task Force:

  • Received quarterly updates from the Coalition Against Insurance Fraud, the National Insurance Crime Bureau, the Financial Crimes Enforcement Network and the U.S. Department of Labor Criminal Division.

The Task Force also received reports from its working groups:

The Agent and Unlawful Activity Working Group

During this meeting, the Working Group:

  • Discussed progress regarding discussions with the U.S. Centers for Medicaid and Medicare Services (CMS) on the exchange of information between state insurance fraud bureaus and CMS.
  • Announced the initiation of discussions between the Working Group and the U.S. Department of Labor Criminal Division regarding investigations and the exchange of information.

The Federal and International Enforcement Coordination Working Group

During this meeting, the Working Group:

  • Discussed work on revisions of the 18 U.S.C. 1033 guidelines and announced its next conference call.
  • Discussed the Producer Licensing Working Group’s draft Guidelines on Background Information.  

The Antifraud Liaison Working Group

During this meeting, the Working Group:

  • Announced a conference call to discuss proposed Antifraud Plan Guidelines.  

The Antifraud Training and Seminar Working Group

During this meeting, the Working Group:

  • Announced regulator-only training to be held July 27 and 28 at the NAIC Central Office.

The Information Sharing and Technology Working Group

During this meeting, the Working Group:

  • Reported that an agreement had been finalized with International Claims Association and the FBI for and enhanced Life Insurance Alert System, for use by law enforcement and state insurance regulators.  

The Enforcement Coordination Working Group

  • Reported on a regulator-only training session on suitability, sales and supervision. This session is being planned by  the NAIC, the Financial Regulatory Agency (FINRA) and the North American Securities Administrators Association (NASAA).

Action Items:

None.

 

Reports of the Working Groups

The following reports of the Antifraud (D) Task Force are provided for approval by during the 2009 Summer National Meeting:

1. Agent and Unlawful Activities Working Group – Steve Nachman (NY), Chair 

The Agent & Unlawful Activities Working Group and the U.S. Centers for Medicare and Medicaid Services (CMS) conducted a teleconference May 11. The Working Group and CMS agreed to hold a regulator-to-regulator meeting during the 2009 Fall National Meeting. CMS and state insurance regulators will discuss information-sharing, investigation expectations and open a dialogue between state insurance fraud regulators and CMS representatives.

The Working Group arranged for a presentation from the Criminal Division of the U.S Department of Labor at the Fall National Meeting. This will be a regulator-to-regulator presentation regarding investigations.

The Working Group is drafting two questionnaires for distribution to regulators following the Summer National Meeting. The topics will address the Working Group’s charges: 1) methods to enhance investigations and prosecution of insurance fraud; and 2) enhancement of cooperation and coordination between state fraud bureaus and law enforcement. 

2. Federal and International Enforcement Coordination Working Group – Mike Ridgeway (OK), Chair

The 1033 regulator subgroup reviewed issues identified during a February 2009 call with regulators and the industry regarding revisions to the current 18 U.S.C. 1033 guideline. The Subgroup requests that additional comments be sent to Keri Kish at kkish@naic.org. The Subgroup will meet after the Summer 2009 National Meeting to continue drafting proposed revisions to the guideline. Once proposed revisions are completed, the draft will be provided to the Task Force for comment and discussion.

3. Antifraud Liaison Working Group – Steve Perry (DC), Chair 

Mr. Perry attended the May 13 meeting of the Bank Secrecy Act Advisory Group (BSAAG) meeting at the U.S Treasury Department. The Group received reports regarding Suspicious Activity Reports, prepaid card scams, money-transfer fraud and the Troubled Asset Relief Program (TARP) Inspector General’s report.

A conference call will be announced regarding a revised draft of the Antifraud Plan Guidelines. The draft will be circulated prior to the call so that regulators and interested parties are prepared to discuss the draft on the call.

4. Antifraud Training and Seminar Working Group – Michelle Brugh (OH) Chair 

An “Insurance Fraud Investigators Boot Camp” will be hosted by the NAIC for regulators on July 27 and 28. The course is targeted for insurance fraud bureau investigators with up to three years of experience in insurance investigations. This course is specific to insurance investigation, but will also include a section on financial investigations. Please contact Keri Kish at kkish@naic.org for information. Regulators may enroll for the course through the Education & Training link on the NAIC Web site, www.naic.org.

The Working Group is seeking recommended topics and speakers for the 2010 Antifraud Seminar. This seminar is open to everyone and will be held in conjunction with the 2010 Spring National Meeting in Denver, CO. Please send suggested topics to Keri Kish at kkish@naic.org.

5. Information Sharing and Technology Working Group – Cindy Schmell (IA), Chair

The Information Sharing & Technology Working Group, along with the International Claim Association and Law Enforcement Online (LEO), has completed the Life Insurance Alert Project. The system was launched May 18 on the LEO network. The system is a link between the law enforcement community and insurers to identity life insurance products belonging to victims of suspicious death cases.

The Online Fraud Reporting System (OFRS) Web service is nearly complete. Information from the National Insurance Crime Bureau NICB will soon be available for the states via OFRS.

6. Securities Enforcement Coordination Working Group – Carol Mihalik (IN), Chair 

The NAIC, the North American of Securities Administrators Association (NASAA) and FINRA are planning a regulator-only training session for 2010 on sales, suitability and supervision. Information regarding this training will be provided as details become available.

 

Minutes are available approximately two weeks after the meeting concludes.

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