Baltimore, MD —Maryland Auto Insurance’s initiative to combat auto insurance fraud in the state has expanded to include extensive fraud prevention training for internal teams and authorized producer partners. On Thursday, May 20, a virtual training session for authorized Maryland Auto producers (agents) was led by Maryland Auto’s Executive Director, Al Redmer, Jr. and Special Investigation Unit Supervisor, Andrew Pacione.
“There is a lot of organized fraud out there and it costs us all a lot of money,” says Executive Director, Al Redmer, Jr. “We at Maryland Auto are committed to identifying and catching fraud. And when we do catch it, we work with the Maryland Insurance Administration and the authorities to prosecute suspected parties.”
Maryland Auto policies are sold by a network of authorized agents across the state and the training is designed to engage the agents in the effort to reduce fraud. “Our providers are the front line in our effort to combat fraud, especially at the point of sale. By being aware of potential fraud indicators and requesting additional documentation or declining to write a policy until appropriate documentation is provided, our partners can prevent ineligible drivers from purchasing Maryland Auto policies illegally,” said Andrew Pacione.
The training session included a review of fraud prevention tactics including confirmation of insurable interest for all policies and residency verification for all applicants.
Maryland Auto is working vigilantly to stop fraudulent claims. In 2019, claims totaling over $3.6 million were denied by Maryland Auto following fraud investigations. Many of these claims were denied based on residency issues. Maryland Law limits eligibility for coverage with Maryland Auto Insurance to state residents. In 2019 and 2020, Maryland Auto conducted more than 900 residency investigations, 75% of which resulted in a policy being voided.
Maryland Auto was created by the legislature with the public mission of providing access to auto insurance to all Maryland drivers. “As an independent agency of the State of Maryland, we also have a responsibility to protect the residents of our state from the financial burden created by insurance fraud,” said Mr. Redmer.
The company’s fraud prevention initiative was first announced in fall of 2020 and began with enhanced fraud identification training for claims associates. “Mr. Redmer has empowered us to create better, more efficient fraud prevention processes at Maryland Auto. In addition to the new training we have enhanced our IT systems to help us identify fraud and suspicious activity,” said Mr. Pacione.
About Maryland Auto
Maryland Auto Insurance is a mission-driven company dedicated to reducing the number of uninsured drivers on Maryland roadways by providing accessible, affordable insurance to drivers who currently are unable to obtain coverage from standard carriers. Maryland Auto was established in 1972 by the State of Maryland to protect its citizens from the risks and costs associated with uninsured driving. To learn more about Maryland Auto, visit www.MyMarylandAuto.com.
Contact: Cathy Nyce, 301-509-6490, Cathy.Nyce@MarylandAuto.Net