FAIR - Fighting Auto Insurance Rip-offs

FAIR LogoA task force launched by Secretary of State Ruth Johnson to fight auto insurance scams released its recommendations, which include proposals to streamline prosecution of offenders, assist law enforcement in verifying insurance during traffic stops and crack down on unlicensed insurance agents. 

Bogus Businesses Revealed thumbnailJohnson, along with her partners in the effort, formally received the recommendations of the FAIR (Fighting Auto Insurance Rip-offs) Task Force on September 18, 2014. Follow this link to download a copy of the report received by Secretary Johnson.     

“These proposals are the tools needed to help stop criminals who are preying on unsuspecting Michigan drivers and help reduce the number of uninsured drivers on the road – something we all pay for,” said Johnson. “One of the biggest benefits of this effort is that we’re seeing more cooperation, more communication than ever before on a problem that must be addressed. I’ve been honored to fight for Michigan drivers and will continue to do everything I can to make sure that criminals can’t take advantage of them.”             

The Task Force included representatives from the Secretary of State’s Office, the Michigan State Police, the Michigan Department of Insurance and Financial Services, insurance industry leaders and prosecutors.

Recommendations range from administrative changes to potential legislative solutions and strengthening partnerships. They include:

  • Intra-agency sharing of data, improved communication. 
  • Additional fraud detection training for police and Secretary of State staff.
  • Improved technology for data analysis and tracking.

Cost of Fraud thumbnailJohnson announced the creation of the independent panel last year after supporting a change in law, which required all insurance companies to send electronic insurance verification to her office twice a month, helped expose a significant amount of invalid insurance.

A one-day snapshot in July 2013 found more than 16 percent of insurance certificates presented that day were invalid or fraudulent.           

According to Johnson, criminals have been surprisingly sophisticated in selling fake auto insurance, setting up fake websites and even bogus help desks where “agents” pretend to verify insurance policies. Every honest Michigan motorist, required by law to carry no-fault insurance, has to pay the costs of having uninsured motorists on the road.



One-Day Snapshot thumbnail

July 31, 2013: One-day Snapshot - 16.1% of certificates submitted invalid
(See report by County)

fraud extremes thumbnail

Fraud Extremes - from sophisticated to ridiculous

Consumer Scams thumbnail

Consumer Scams - Actual posting from craigslist:

crimes exposed thumbnail

Crimes Exposed - Phony Call Center, Fake Companies & more.