GALLAGHER ENFORCES TOUGHER FRAUD REPORTING BY FLORIDA’S INSURANCE COMPANIES

Tom Gallagher, Florida’s chief financial officer, announced that the department has ratcheted up its fight against insurance fraud by requiring insurance companies to better document their own in-house fraud fighting efforts.

Noting that the Department of Financial Services’ Division of Insurance Fraud (DIF) is consistently recognized as leading the nation in insurance fraud arrests and convictions, Gallagher said the next step was to ensure any information about suspected fraud is promptly reported.

“Floridians are facing an insurance crisis that is being driven by a number of factors,” Gallagher said. “We are determined to do all we can to keep costs down for Floridians and that is why we are requiring greater accountability from insurers and companies in reporting fraud.”

The department’s aggressive fight against workers’ compensation and auto insurance fraud has led to lower rates in recent years, including a more than 30-percent decrease in workers’ compensation rates in the last three years. A fourth consecutive rate drop is pending.

Gallagher called for the new rule more than a year ago to require all property and casualty, life and health insurers, and health maintenance organizations (HMO) licensed to do business in Florida to:

• Refer fraudulent claims directly and electronically to DIF;

• Track the date that suspected fraudulent activity is detected and the date it is reported to DIF;

• Detail the process they have in place for identifying and referring suspicious claims; and

• Establish minimum standards for training employees in anti-fraud efforts.

In the last fiscal year that ended June 30, the fraud division made 795 arrests and garnered 620 convictions. The new rule is effective October 5.

“We need to continue aggressively rooting out fraud that financially impacts Florida’s families,” Gallagher said.

FUNERAL DIRECTOR CHARGED WITH GRAND THEFT,
SELLING INSURANCE WITHOUT A LICENSE

A funeral home director is facing felony charges that he sold a pre-need funeral services contract without a license to a woman he met at church and then pocketed the money.

Tebbie Singleton, owner of Singleton Funeral Home in Tampa, negotiated a contract for $3,855 for funeral goods and services and received a check for $3,155 with the remainder to be paid when the services were provided. An investigation by the Department of Financial Services, Division of Insurance Fraud (DIF), and the Division of Funeral, Cemetery and Consumer Services, determined Singleton never forwarded the money to complete the deal and was not authorized to enter such a contract.

“It is unconscionable that an individual would take advantage of someone trying to prepare for the end of life,” said Gallagher, who oversees the department. “If this individual is convicted, we will seek to ensure this victim and any others are repaid and that he no longer works in this industry.”

Only one possible victim has been identified so far, but Gallagher said anyone who thinks they may be a victim should contact the department at www.MyFloridaCFO.com or by calling 1-800-342-2762. If convicted, Singleton could face up to five years in prison on each charge.

This is the first arrest stemming from a joint investigation between DIF and Division of Funeral, Cemetery and Consumer Services since the latter joined the department late last year. The new division was created by consolidating the Board of Funeral and Cemetery Services, which had operated under DFS, and the Board of Funeral Directors and Embalmers, which had operated under the Department of Business and Professional Regulation.

For more information about the Division of Funeral, Cemetery and Consumer Services, log on to www.MyFloridaCFO.com/FuneralCemetery/.

FLORIDA HISPANIC HERITAGE MONTH

The fourth annual Florida Hispanic Heritage Month runs through October 15 to pay tribute to Florida's Hispanic culture. The theme for this year's celebration is "La Florida: Honoring Our State's Spanish and Latin American Influences."  Celebrate the achievements and contributions of our state's Spanish-speaking cultures and communities with Floridians across the state to honor and embrace our state's rich heritage. 

This month honors the independence days of seven Latin American countries -- Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Mexico and Chile – and recognizes the discovery of America. The first event in Florida’s recorded history was the landing of Ponce De Leon in 1513. Since then, Spanish-speakers have converged in Florida, giving it one of the most unique and diverse Hispanic populations in the world.

An exhibition of Latin American art, featuring relevant modern and contemporary works by Frida Kahlo, Diego Rivera, Fernando Botero, Rufino Tamayo, Guillermo Muñoz Vera, Roberto Matta and Pablo Atchugarry, are on display in the Governor’s Mansion from September 15 to October 15, and the show is open to the public by appointment. The Governor and First Lady were joined at the event’s opening by Mexican businessman and telecommunications mogul Carlos Slim Helú along with Hispanic business, community and cultural leaders from across the state.

Partners and sponsors for the 2006 Hispanic Heritage Month include the Volunteer Florida Foundation, Volunteer Florida, Florida Department of Education, City of Tallahassee, Wal-Mart/ Sam' s Pharmacy, the Sallie Mae Fund, Florida Prepaid College Foundation, Greenberg Traurig, Ford Motor Co. Fund, Telefonica USA, Walt Disney World, Prudential Financial, Florida Education Foundation, Pollo Tropical, Hayes Computer Systems, Brown & Brown, Florida Coca Cola Bottling Group and the Cuban American Bar Association.

For more information on Florida’s Hispanic Heritage Month, please visit www.floridahispanicheritage.com.