Circular Letter No. 10 (2000)

March 10, 2000


All Licensed Insurers


Electronic Fraud Reporting System

The Insurance Department has established an electronic system for reporting of incidents of suspected insurance fraud. The purpose of Circular Letter No. 10 is to inform the insurance industry how the system operates and to encourage insurers to take advantage of this innovative method of fraud reporting.

Using the IBM Global Network, insurers can access the Department's internal system, complete the report form electronically and immediately transmit the information to the Frauds Bureau. The new system has a number of features that will enhance the investigation of suspected fraud. For example, the form appears on several data-entry screens, rather than a one-page paper form, permitting insurers to provide more thorough and complete information on each case. In addition, each screen includes instructions for reporting the information correctly.

The system also allows an insurer to view a list of fraud allegations previously transmitted electronically by that insurer. Information of this type provides an opportunity for insurers to track their reporting patterns and trends. In addition, insurers can use the system to monitor the number of incidents of suspected insurance fraud they report each year and provide that information to the Department as required by Regulation.

Once the information has been transmitted, the screen provides valuable cross references. Such cross references include all other reports in the Frauds Bureau database that share information with the report just transmitted, e.g., the same name and/or address of the suspect, the vehicle identification number (VIN) in cases of auto insurance fraud, or other matching data.

Insurers can also access the details contained in these cross reference reports and will be given the name and telephone number of a contact person at any other company on the cross reference list.

In order to participate in this new reporting system, insurers must provide the following information via email to [email protected]:

Name and address of company
NAIC number
Name and telephone number of contact person

Once we have received this information, insurers will receive email instructions for accessing the electronic reporting system.

Very truly yours,

Charles DeRienzo
Director, Insurance Frauds Bureau