In the largest-ever civil insurance fraud case filed in the state of New York, Allstate Insurance Co., Encompass Insurance and Nationwide Mutual Insurance Co. last month filed a RICO (Racketeer Influenced and Corrupt Organization Act) lawsuit in the Supreme Court of New York.After 21 months of investigation, Allstate filed the complaint against 74 individuals whom the Northbrook, Ill.-based carrier alleges were either principals or employees of-or otherwise involved with-a group of companies established for the sole purpose of generating hundreds of millions of dollars in fraudulent insurance claims.
The insurance carriers are seeking to recoup more than $100 million in compensatory and treble damages for thousands of no-fault claims-averaging $8,000 per patient-which the insurers paid as a result of the alleged fraud scam.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access