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Includes: current situation in Minnesota, a proposed administrative system, proposed statutory language, etc. Appendices contain: proposed rules, questionnaires, notices & forms, & more. Brief section on national efforts to combat fraud.
"Only in America can you steal more money with a ballpoint pen than with a gun" (Insurance Services Office, Inc [ISO], 2009, p. 3). Workers' compensation cases fill newspaper and television headlines. Workers' compensation fraud brings to mind dishonest employees who fake or exaggerate injuries: the employee who claims a severe back injury limits his or her mobility but performs intense yard work at his or her home. The truth is another type of workers' compensation fraud exists that can cause much higher losses. Estimates claim that for every dollar lost because of claimant fraud, four to five dollars are lost due to premium fraud (ISO, 2009, p. 3).Workers' compensation premium fraud is a costly problem that does not receive the attention it deserves. Workers' compensation claimant fraud causes smaller losses to insurance companies, when compared to premium fraud, yet claimant fraud remains the focus of insurance companies, states, and employers. This project demonstrates the severity and pervasiveness of premium fraud and the necessity for a solution. States, insurance companies, employers and employees can all take action that will reduce premium fraud.
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