The online fraud reporting system – which allows consumers to provide detailed information anonymously – is one part of the NAIC’s three-prong action plan, developed by the NAIC Executive Task Force on Broker Activities over the preceding months to protect consumer interests.
State insurance regulators continue to move forward on a coordinated mission to deal with the issue of broker compensation aggressively, said Diane Koken, NAIC president and Pennsylvania Insurance Commissioner. The addition of online fraud reporting capabilities to the NAIC’s Website is another step toward our goal of addressing alleged misconduct and violation of existing insurance laws involving insurance companies and insurance brokers.
No personal identifying information is required to submit an allegation of suspected fraud. A consumer wishing to receive verification of the NAIC’s receipt of the report is required to provide a name and e-mail address. Consumers also may choose to provide additional contact information to facilitate additional communication from the state insurance department that investigates this report.
To file a suspected insurance fraud report, consumers are required to indicate the state where the suspected fraud occurred, name of the business or individual, with a complete mailing address. Other optional fields include the phone number and date of birth, as well as date of suspected fraud and amount of loss. The report also includes a text box allowing the consumer to provide additional details of the suspected fraud.
In addition to the online fraud reporting system, the Task Force – which was formed by the NAIC last year – developed two more components to address the issue of broker compensation. These components are: development of a model act to create more transparency for insurance consumers through better disclosure of broker compensation arrangements; and coordination of state insurance departments’ efforts to address improper conduct by brokers and insurers through investigation and collection of relevant information.
