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No Fault fraud is a crime! Period.

September 18, 2015 by Steven M. Gursten

The perpetrators of insurance fraud in Michigan must be identified, caught, prosecuted and punished – on both sides

No Fault insurance fraud

Yesterday I wrote about the rampant No Fault fraud and abuse committed every single day by Michigan’s auto insurance companies. I gently took Bridge Magazine to task for its otherwise excellent piece on insurance fraud that focused only on lawyer fraud, yet ignored insurance company fraud.

Here are some of my blog posts I wrote that address No Fault fraud and ambulance-chasing lawyers:

But the other side of the insurance  fraud coin that equally outrages me is the the incredible abuse I see every single day as an attorney by the insurance companies in Michigan. Today I’d like to continue the discussion with my proposed solutions for the problem of No Fault fraud by car insurance companies.

Wouldn’t it be something if the insurance company claims adjusters who play games with peoples’ lives and cause incredible hardships and additional sufferings would also be punished for the fraud they commit (instead of being financially rewarded by the companies they work for)?

If, as some believe, No Fault fraud is driven by attorneys who (I believe) are essentially criminals, and their greed and zeal to get their hands on the No Fault system’s “unlimited pot of money,” then we should recognize the insurance industry also views Michigan’s auto insurance system as an unlimited pot of money.

Here, we have no sunlight and disclosure on just how much money insurance companies are making on their auto lines, although many experts believe the profit margins on these auto lines to be extravagantly high in this state.

One additional thought: It’s time for reasonable medical fee schedules in Michigan. Aside from lowering auto insurance prices for consumers, medical fee schedules would remove boatloads of red tape and expensive litigation for medical service providers, as my recent experience as a case evaluator reminded me.

These medical service providers likely would not need to hire provider lawyers and file expensive and time consuming provider lawsuits just to get what they should.  And it would lower the medical fees charges payable by auto insurance companies. Implementing medical fee schedules would greatly reduce, if not outright eliminate, the No Fault abuses on both sides that are also the driving force for the “insurance fraud networks” that are preying on our No Fault system, as the Bridge story discussed.

To learn more about my views on medical fee schedules, please take a look at my blog post, “Would a compromise with truly fair medical fee schedules be the solution to preserving Michigan’s No Fault system?”

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