Md. Regulators Issue First-Ever Civil Fraud Orders

The Maryland Insurance Administration issued on July 23 its first administrative orders under newly granted authority to pursue civil cases of insurance fraud.

The authority took effect last October following passage of legislation by the 2012 Maryland General Assembly. Previously, the agency investigated only criminal fraud cases, which are prosecuted by either State’s Attorney’s Offices or the Office of the Attorney General. Fraud referrals made to the agency’s Insurance Fraud Division since October 1, 2012, are now also reviewed for civil remedies.

Orders were issued in two separate cases. The first involved a Baltimore woman who submitted falsified documents saying she missed eight days of work after an auto accident. She was ordered to pay a $2,000 fine and reimburse State Farm for a $644 payment. The second case involved a Mechanicsville man who filed a disability insurance claim with a false date listed for his return to work. The man was ordered to re-pay $1,120.70 to American United Life Insurance and pay a $2,000 penalty.

Topics Fraud Maryland