SOUTHEAST REGIONAL NEWS
A study released late last year indicates that Florida leads the country in the number of insurance fraud convictions. According to the Property Casualty Insurers Association of America (PCI), this is an encouraging sign in the ongoing fight against insurance crime.
"Florida has introduced a number of measures specifically designed to aggressively fight insurance fraud, including new laws against auto fraud and a new state prosecutor dedicated to fighting auto fraud," said John G. Eager, PCI's senior director of claims.
The study, released by the Coalition Against Insurance Fraud, reports that Florida had 771 insurance fraud cases referred to prosecution in 2002, followed by California with 687. Florida also leads the country in convictions, with 456 in 2002. In contrast, the average number of convictions among the 43 reporting states was only 74.
The study indicated that the Florida fraud bureau's annual budget was relatively modest in comparison with other states--$11.2 million in 2003, compared with California's $34 million and New Jersey's $29.9 million. The Florida bureau also has fewer employees than other states.
In September 2003, the Florida Joint Underwriting Association (JUA) agreed to finance a prosecutor in the Dade County State's Attorney's Office dedicated to auto personal injury protection (PIP) fraud. The state passed laws during the 2003 legislative session targeting auto insurance fraud.
It is estimated that Florida consumers pay as much as $1,400 per year in increased premiums and higher costs for goods and services because of insurance fraud, which is especially prevalent in Dade County.
Area news
Agencies acquired, merged
BB&T has announced plans to buy insurance premium finance company Capitol Premium Plan Inc., of Charlotte, North Carolina, in a stock swap. BB&T will combine the firm with BB&T's Prime Rate Premium Finance Corp. Inc., which is based in Florence, South Carolina. The combined firm will operate under the Prime Rate name.
Annual conventions planned
Independent Insurance Agents of Virginia and Professional Insurance Agents (PIA) of Virginia & District of Columbia--June 26-27, Williamsburg (Virginia) Marriott. For more information, go to www.iiav.com or call the PIA of VA & DC at (804) 264-2582.
Florida Association of Insurance Agents--June 17-19, Orlando World Center Marriott. For more information, go to www.faia.com.
Independent Insurance Agents of Georgia--Young Agents: May 5-9, Edgewater Beach Resort in Panama City, Florida; Annual Convention: June 23-27, Amelia Island (Florida) Plantation. For more information, call the IIAG at (770) 458-0093.
PIA of Georgia--June 25-27, The Westin Resort at Hilton Head, South Carolina. For more information, go to www.piaga.com.
Independent Insurance Agents of Kentucky--June 17-19, Holiday Inn University Plaza Hotel in Bowling Green. For more information, call the IIAK at (866) 426-4425.
PIA/Mississippi Claims Convention--July 15-18, Perdido Beach Resort in Orange Beach, Alabama. For more information, call the PIAMS at (800) 898-0136.
Independent Insurance Agents of North Carolina--Young Agents: June 13-15, Holiday Inn Sunspree in Wrightsville Beach. For more information, call the IIANC at (803) 731-9460.
Independent Insurance Agents & Brokers of South Carolina--Young Agents: May 14-16, The Mills House in Charleston. For more information, call the IIABSC at (803) 731-9460.
Insurors of Tennessee--Mid-Year Conference: July 25-27, Hilton Sandestin (Florida) Beach. For more information, call the association at (615) 385-1898.
PIA of Tennessee--June 17-19, Gatlinburg. For more information, call the PIATN at (615) 771-1177.
Workers comp costs ranked
According to the National Foundation for Unemployment & Workers' Compensation, West Virginia has the nation's highest workers comp cost per covered employee--an average cost of $1,073--compared to a national average of $350 per covered employee. California has the nation's second highest ($652). Other southeastern states surrounding West Virginia have significantly lower average costs: Virginia, $207; Kentucky, $309; and Maryland, $343.
Mississippi
Credit scoring rule takes effect
Late last year, the Mississippi Department of Insurance made effective an administrative ruling (Regulation 2003-1) which delineates restrictions and requirements for personal lines insurers using credit information in rating and underwriting. *