This past fall, a new Bureau of Fraud Deterrence was created within DOBI. The Bureau, which is comprised of 90 civil investigators and staff who were previously part of the Office of the Insurance Fraud Prosecutor, officially began their duties in October 2010.

Their transfer from the Department of Law and Public Safety, where criminal prosecutions will remain, was part of the State’s 2011 fiscal budget.

The Bureau is investigating all levels of alleged fraud, from misrepresentations on insurance applications to complex cases.

“This separation of civil and criminal represents a common-sense reorganization that will strengthen the State’s ability to deter fraud,” said Commissioner Considine. “Housing the Bureau within DOBI will benefit all involved by creating synergies between Bureau staff and the existing insurance regulators.”

In addition, the new investigation unit is viewed as a key part of the Department’s planned approach to reign in auto insurance PIP costs. The Bureau will make a special effort to investigate suspicious and phony personal injury protection claims as well as questionable claims of medical services not actually provided.

New managers, Assistant Commissioner Joe Brennan and Chief Investigator Gary Heuer, will lead the Bureau.

All insurance consumers pay the price for insurance fraud. Fraudulent claims cost insurance companies money which is then recouped through higher premiums and rates. This leads to hundreds of dollars in increases for the average household and makes all who are insured victims.

Data shows that insurance fraud attracts a varying demographic of people from many different walks of life. In 2009 New Jersey opened 5,683 new cases, approximately 4,500 of which were civil investigations.

Anyone who believes they have been a victim of insurance fraud or who has information about an individual or entity that may be in violation of the law should call 1-877-55-FRAUD, 1-800-446-7467 or email NJInsuranceFraud@njdcj.org.