Insurance vice chair testifies in support of plan

State Rep. Mike Harris on Thursday delivered testimony before the House Insurance and Financial Services Committee in support of a bipartisan plan to better prevent and punish insurance fraud.

According to recent reporting by Forbes,an estimated $300 million is lost to insurance fraud annually in the United States, costing American consumers an average of $900, mainly in the form of higher premiums. Harris, who serves as Republican vice chair of the panel, said that the package of bills would strengthen penalties and improve communication to help insurers and law enforcement detect and deter fraud.

“Families and small businesses in our communities get stuck paying higher premiums when criminals commit insurance fraud,” said Harris, R-Waterford. “Our bipartisan plan will help prevent this costly crime and punish those responsible. Heightened penalties will crack down on insurance fraud with the seriousness it deserves, helping deter anyone thinking of defrauding insured Michiganders. Enhanced communication and reporting will empower state authorities, insurance companies, and other professionals to identify and investigate fraud. This plan will provide more tools to go after fraudsters and protect hard-working Michiganders from higher costs.”

Harris, a retired Waterford police sergeant, has experience pursuing insurance fraud from his career in law enforcement and private investigation.

House Bills 5192-5197 create a wider array of criminal and civil penalties against those who commit insurance fraud, require prompt reporting of suspected insurance fraud to authorities, and improve information sharing between with the National Insurance Crime Bureau, a trade association dedicated to investigating insurance fraud.

Harris is the sponsor of HB 5194, which would include insurance fraud within the legal definition of racketeering, giving prosecutors greater ability to charge and seek penalties against those involved in insurance fraud schemes.