April 1, 2005
Delaware Insurance Commissioner Matt Denn has initiated a crackdown by his department on auto insurance fraud.
Denn announced several policy changes in the way auto insurance fraud cases are handled, including makeing them public. Denn also announced his officie was taking immediate action against six alleged auto fraud perpetrators.
“We want to send a clear message to the public that people attempting to engage in auto insurance fraud will be identified, caught, and punished,” Denn said. “Delawareans already pay enough for auto insurance. They should not have to pay higher insurance rates to subsidize people who try to cheat the system.”
The insurance industry estimates that 11 to 15 percent of claims paid out by auto insurance carriers are the result of fraud.