Consumer eViews

Volume 3 Number 14
April 3, 2006

Consumer Services HelpLine Number 800-342-2762

The Legislature is poised to take aggressive action again this year against fraud artists who steal money from Florida’s hard-working families by staging or fabricating auto crashes and making fraudulent auto insurance claims. The pending legislation, along with continued strong enforcement by the Division of Insurance Fraud, will help ensure Florida drivers continue to have access to medical care if they are injured in an auto crash.

Fraud artists have targeted the Personal Injury Protection (PIP) insurance coverage, but aggressive arrests and prosecutors along with hard-hitting legislation passed in 2001 and 2003 have driven the costs of premiums down in recent years. Legislation I have proposed this year to continue that success is being sponsored by Sen. J.D. Alexander and Rep. David Rivera. The legislation passed in key committees last week and moves on to the Senate Health Care Committee and the House Fiscal Council this week.

The legislation would make it a second-degree felony if a driver files a fraudulent accident report or insurance claim on a crash that never happened and would revoke the driver's license of any individual convicted of committing auto insurance fraud. It would also amend the patient-brokering statute to make current provisions more widely applicable to all medical practitioners, and establish penalties for insurance companies that fail to report fraud. Other legislation would provide funding for more dedicated prosecutors. The dedicated prosecutor in Miami-Dade County has already resulted in an increase of more than 20 percent in arrests and convictions.

I applaud Floridians who have come forward to tell legislators how their PIP coverage was critical to helping them or their loved ones get needed medical care. And I commend our legislators for working to find more ways to combat auto insurance fraud in Florida.

GALLAGHER: DESIGNATE APRIL 4th AS HEALTHY KIDS DAY

Tom Gallagher, Florida’s chief financial officer, will present a resolution to the Governor and Cabinet designating April 4 as Healthy Kids Day in Florida. The resolution recognizes Florida Healthy Kids, a non-profit, public-private partnership that provides quality, affordable health insurance coverage to uninsured school-aged children in Florida.

Gallagher, who helped establish Healthy Kids in 1992 as a pilot project in Volusia County, said that more than one million children statewide have been served to date.

“For many working families, the greatest need they have is health insurance coverage for their children,” said Gallagher, who serves on the Cabinet. “Healthy Kids has helped meet that need and ensured the care and well-being of more than one million school-aged children in Florida.” CONTINUED

Lt. Kevin Fiedor, state fire marshal's office, speaks on the dangers of meth.

Rep. Faye Culp, R-Tampa, is sponsoring meth legislation in the House

GALLAGHER RENEWS CALL FOR LEGISLATION TO COMBAT METH

Bill would better protect child victims, emergency responders and communities

State Fire Marshal Tom Gallagher joined legislative leaders, law enforcement and firefighters in calling for the passage of legislation aimed at combating methamphetamine or “meth” labs in Florida and enhancing protections of children, law enforcement and other emergency responders exposed to meth manufacturers.

“The spread of meth in our communities is a serious threat to our families and our first responders, and it is a challenge which requires a comprehensive approach,” said Gallagher, who first proposed the reforms last June. “The legislation I am proposing today will increase penalties for meth makers, increase protections for firefighters and first responders, and rescue innocent children from toxic living conditions. Attacking meth in our state is my number one legislative priority as Fire Marshal.”

Gallagher was joined by Senator Carey Baker (R-Eustis) and Representative Faye Culp (R-Tampa), who are sponsoring legislation, Senate Bill 2356 and House Bill 1325, reflecting the recommendations of the State Fire Marshal’s Office.

“Senator Baker and Representative Culp know the dangers meth poses to their communities, and their sponsorship of this legislation is a testament to their leadership,” added Gallagher.

“If we don’t do more than slap meth makers on the wrists, they will continue to produce this insidious drug and further endanger our communities,” said Sen. Carey Baker, who is sponsoring the legislation. “Moreover, removing children immediately from homes used as meth labs is their best, and maybe only, chance to get the medical care they need.” CONTINUED

GALLAGHER BANS AGENT WHO EARNED COMMISSIONS BY LURING SENIORS INTO COSTLY ANNUITY DEALS

Tom Gallagher, Florida’s chief financial officer, has revoked the license of a Tampa Bay-area insurance agent who used radio advertisements and seminars to lure senior citizens, ranging in age from 78 to 90, into buying annuities that cost them thousands of dollars in penalties, or were inappropriate for their needs, but generated high commissions for the agent.

Gallagher also ordered Bijan Razdar, 52, of Port Richey, banned permanently from transacting insurance in Florida. Razdar had been a licensed agent in Florida since 1988.

“We have zero tolerance for insurance agents who deceive our seniors and cheat them out of their hard-earned retirement funds,” Gallagher said. “We will continue to bring the full force of the law against unscrupulous agents and aggressively educate our seniors against these scams.”

Razdar’s license revocation follows an investigation by the Department of Financial Services’ Division of Agent and Agency Services, Bureau of Investigations, and the Division of Legal Services. As Florida’s CFO, Gallagher oversees the department. In the last three years, Gallagher has taken action against more than 110 agents for theft and fraud involving the elderly. CONTINUED

FLORIDA’S STRONG JOB STATISTICS LEAD THE NATION

Florida continues to be national leader in job creation

Florida’s most recent employment numbers highlight the state’s continued success as a national leader in new jobs created. Florida’s unemployment rate is 3.2 percent as compared to the nation's rate of 4.8 percent.

The Florida job growth rate is more than twice the national average, growing by 3.8 percent from February 2005 to February 2006, while the national job growth rate was 1.5 percent.

According to statistics released by the Florida Agency for Workforce Innovation, during the 12 months that ended in February, the state added 295,400 positions (seasonally adjusted). The national study, released annually, evaluates the business climate in the U.S. based on 26 factors important in conducting and succeeding in business

Based on the nationwide data, Florida had the fastest job growth and lowest unemployment rate of the 10 most populous states and the highest number of new jobs than any other state, according to the state agency.

The state has benefited from record population growth with some 400,000 people moving to the state annually.

Among the biggest job producers were the categories of professional and business services, construction and leisure and hospitality. The construction industry is being boosted by a statewide backlog of repair work from recent hurricanes.