Insurance Commissioner Fights Fraud | Asurea Scam Report

Insurance Commissioner Fights Fraud | Asurea Scam Report

by Angela Bass, January 8, 2016

Dave Jones Takes on Insurance Fraud

Dave Jones, the Insurance Commissioner of California, has been keeping busy since he first took office in 2010. Among his many victories are several protections for consumers of insurance products and services. And he is big on stamping out fraud of any kind.

In 2013, an anti-fraud, health-care lawsuit he filed led to a record settlement of $46 million with the Sacramento-based Sutter Health. This settlement forced the major hospital chain to change its entire billing system related to anesthesia services.

According to an article in the North Bay Business Journal, Commissioner Jones commended Sutter in an announcement for agreeing to the settlement. “This new transparency should lead to lower prices and point the way to similar billing reforms for all types of hospital services,” he was quoted as saying.

And then there was his investigation into some of the nation’s largest life insurance companies. He ended their longstanding practice of hoarding customers’ life insurance benefits, winning back $1 billion belonging to folks like you. “As I promised when I was sworn in for a second term, we have worked aggressively to investigate and assist in the prosecution of those committing insurance crimes, [taking] strong actions to protect consumers,” said Commissioner Jones in a press release posted on New Year’s Day 2016.

Fighting off the scammers

One thing that Commissioner Jones feels strongly about is unchecked insurance fraud. That’s why he hasn’t let up in the fight against it.

In fiscal year 2015-2016, Dave Jones enjoyed several victories, including:

  • Awarding nearly $35 million in grants to district attorneys in 42 counties to fight workers compensation fraud.
  • Awarding over $21 million in grant funding to fight auto and organized auto fraud.
  • Arresting 745 individuals, as of November 30, 2015, for alleged insurance fraud.
  • Visiting more than 75 business owners to educate them about the need to follow insurance, licensing, workplace safety, labor laws and tax codes. This “bust” led to “more than 15 citations, multiple stop-work orders and nearly $300,000 in fines.”

Moral compass against scams

Our Asurea team applauds the commissioner’s stance against insurance fraud. It provides the moral compass that all insurance companies should be following.

In a press release, Commissioner Jones declared, in so many words, that even with a long list of triumphs during his time in office, his work is far from over. He looks forward to another year of bringing insurance fraud to its knees, “ensuring a vibrant insurance market where insurers keep their promises and the health and economic security of individuals, families and businesses are protected.”

Insurance fraud superheroes

With our Asurea Scam Report, we aim to expose insurance scams and other dishonest practices that hurt consumers like you. Like Commissioner Jones, we believe all people deserve to lead financially secure lives.

 

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This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice.

 

Angela Bass

Angela Bass

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Angela joined Asurea as the Content Marketing Writer in September 2015. She is also a freelance multimedia journalist, having written and produced stories for Land & People Magazine, The Baltimore Sun, California Health Report, NPR's Latino USA, PRI's The World and KALW's Crosscurrents, among others. In 2014, she founded Storybrook Media, which provides video production services to nonprofits and small businesses. She holds a Master’s in Journalism from UC Berkeley and a BA in Creative Writing from San Francisco State.
Angela Bass