North Dakota insurance fraud increases

March 21, 2011
By: Jana Bell

Insurance fraud claims have doubled each year in North Dakota between 2008 and 2010, reported the Jamestown Sun, reaching 94 last year.

The claims totaled more than $1 million, many of which state Insurance Commissioner Adam Hamm said were suspicious. The biggest spikes in fraud occurred in health, auto, and homeowners insurance, according to the newspaper.

"Times are tight out there and you might see more criminal activity," Hamm told the paper. "And we definitely have in insurance fraud."

The number of staged accidents and hit and runs on state roadways has increased, while the Sun says some doctors have billed health insurance companies for procedures that were not performed. Those committing home insurance fraud may stage a burglary or overstate the value of stolen items, Hamm told the source.

In 2008 the Insurance Department saw 23 fraud referrals, the paper said, which increased to 48 in 2009.

The Coalition Against Insurance Fraud reports that dishonest claims steal about $80 billion from the U.S. each year. The organization said that same amount could fund the salaries for 2.2 million American workers or pay all the personal income taxes for 7.4 million people a year.

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