New Year Brings Changes to
Investigations Division
2002 Sees Record Accomplishments, New Responsibilities
Jim Long, Commissioner
This edition is dedicated
to Tom Jacks.
inside..,
Record-setring accomplishments
and new responsibilities began
2002 for the country’s oldest
insurance fraud division located right here in
North Carolina. Started in 1945, the
Investigations Division of the North Carolina
Department of Insurance continues to handle
one of the Departments top priorities — the
fight against fraud.
This fight escalated into the most
successful and significant year ever for the
Division in 2001, resulting in the successful
resolution of 73 insurance fraud investigations,
27 of which involved criminal convictions and
46 of which involved monetary recoveries. In
all, almost $26 million was recovered in the
form of fines, restitution and savings to both
die industry and to our North Carolina
citizens. This represents an $8 million increase
from the prior year and illustrates the
commitment the Division has made to
investigate priority, high-impact insurance
fraud cases in North Carolina and across the
Department Mourns Loss of Deputy and Friend; Consumers Lose Advocate . . . 2
2001 Consumer Services Numbers Reflect Successful Complaint Resolution . . . .3
New Companies . 3
Evolution of New Consumer Program Begins . 4
New Duties for Department Professionals . 4
NIPR Goals Met, Electronic Non-Resident Licensing in Place . 5
ASD - Unauthorized Insurers . 5
Common Mistakes when Submitting Electronic CE Rosters . 5
Terrorism Exclusion LanguageAvailable . 6
New on the Web; Industry Filings . 6
St. Paul Pulls Out of Med Mal Market . 6
Director of N.C. SAFE KIDS Resigns . 7
Opportunity for Holocaust Victims to File Claims . 7
Senate Bill 318 - Session Law 2001-203: Insurance Producer Licensing . 8
Commissioner Rejects 2001 Auto Reguest; Reviews '02 Increase . 9
Regulatory and Criminal Actions . 9-11
Shifts Abound in Public Services Group . Back Cover
nation. These investigations resulted in state
and federal convictions of industry and non-
industry individuals for violations covering the
gamut of insurance fraud including
embezzlement, forgery, false pretense, mail
fraud, fraud by wire and conspiracy. Several of
those convicted received significant sentences,
including active incarceration.
This commitment to fight insurance
fraud is underscored by a new addition to die
Divisions team of sworn law enforcement
officers — nine new investigators, formerly of
the Special Services Division (see story, back
rover), joined the group this year. These
investigators bring with them a wide variety of
expertise and experience and wall be
instrumental in improving the Division’s anti¬
fraud efforts for years to come.
The merger of divisions also brings the
added responsibility of investigating violations
of criminal law concerning the bail bonding
industry, collection agencies, motor clubs and
premium finance companies, all formeriy
covered in the Special Services Division.
While regulation of these entities are the
purview of the Department of Insurance’s
Agent Services Division, the Investigations
Division is now actively engaged in several
criminal investigations concerning professional
and surety bail bondsmen, unlicensed
collection agencies and premium finance
contracts.
The Department, as always, encourages
all North Carolinians to remain alert to the
possibility of fraud and to report suspected
insurance fraud to the N.C. Department of
Insurance, Investigations Division, 430 N.
Salisbury Street, Raleigh, NC 27603. The
Investigations Division may also be contacted
by phone at (9 1 9) 733-7434 or by accessing
the Department’s Web site, www.ncdoi.com.
