Philadelphia Chapter CPCU Offers Free Presentation to Schools, Clubs, Civic Groups

Every American household pays $200-300 extra in insurance premiums each year to offset the cost of insurance fraud, according to the National Insurance Crime Bureau and the CPCU Society (Chartered Property Casualty Underwriters).

"Some people think that insurance fraud doesn’t hurt anyone because the insurance companies are paying for it," said Peter Palestina, CPCU, 1999-2000 President of the CPCU Society’s local Philadelphia Chapter and Northampton Township Supervisor liaison for public safety. "But fraud hurts everyone who buys insurance. Just as a part of the money you spend in department stores is necessary to defray the cost of shoplifting, a portion of your insurance premium goes to offset the cost of fraud."

But the cost of insurance fraud can be even higher for some Americans—those are the innocent victims of organized rings of fraud criminals. Consider the "swoop and squat" scenario—a car (the swoop car) cuts into traffic in front of the car you’re following. The driver of the car ahead of you (the squat car) slams on the brakes, forcing you to collide with him. The swoop car disappears, while the driver and passengers of the squat car claim injuries that you and your insurance company end up paying for.

And the cost is more than just vehicle damage and medical costs for the "squat" car occupants—you can end up with higher insurance premiums, a blemished driving record, and even serious physical injuries.

To raise consumer awareness about the magnitude of insurance fraud, the CPCU Society and the National Insurance Crime Bureau have joined forces in a national "Educating Against Insurance Fraud" campaign. Members of the local Philadelphia Chapter have developed a consumer awareness program, "Insurance Cheats Are Deadbeats—And They Cost You Money!" This 30-minute program takes a dynamic look at scams and the people who perpetrate fraud, and provides common sense approaches to keep you from becoming a victim. You’ll also learn why it’s the "hard-core" offenders who represent the biggest challenge in fighting fraud. These offenders operate in networks and make their living by defrauding insurers and the public over and over.

You’ll find out what’s being done to fight fraud and how insurers work with law enforcement agencies and legislators to incarcerate offenders and pass laws aimed at reducing fraud.

To schedule a free presentation of "Insurance Cheats Are Deadbeats—And They Cost You Money!" for your group or organization, call Peter Palestina, CPCU at 215-364-3000 or e-mail at peteypal@aol.com .

Photos above were taken at a presentation by Pete Palestina, CPCU at the May 9, 2000 meeting of the Chiefs of Police Association of Bucks County, PA.