An tried insurance coverage fraud — a criminal offense serving to to gas Florida’s place because the state with the third-highest common automobile insurance coverage charges within the nation — bought 4 males a free experience to the Miami-Dade County lock-up.
Bryan Carlos Hernandez, Elvis Fonseca Lauzao, Juan Fonseca Lauzao and Rusland Rivero Tellez, had been charged Might 22 with varied felonies, in response to the Workplace of the Chief Monetary Officer Jimmy Patronis. These felonies embrace grand theft, organized fraud, false insurance coverage claims and organising a staged accident for the aim of insurance coverage fraud.
The 4 exploited private damage safety (PIP) advantages of their insurance coverage insurance policies, billing Progressive Insurance coverage and Nationwide Normal insurance coverage after a staged Might 12, 2023 accident in Miami-Dade County that had no reported accidents, in response to an investigation by the CFO’s Felony Investigations Division (CID), Miami Area Workplace.
“If you happen to interact in insurance coverage fraud in Florida, you’ll be uncovered and held accountable,” Patronis mentioned, in response to a information launch. “PIP fraud not solely undermines the integrity of our insurance coverage markets but in addition imposes an undue monetary burden on each Florida resident within the type of inflated insurance coverage premiums.”
Certainly, the typical, annual value of a full-coverage coverage in Florida, at $2,917, is 44% larger, or about $900 extra, than the nationwide common, which clocks in at about $2,019 a yr, in response to Insurify, a nationwide insurance coverage comparability platform.
Every of the accused on this case faces as much as 10 years in jail, if convicted, in response to Patronis’ workplace.
The investigation discovered that the boys went to bodily remedy clinics for accidents they by no means sustained. Progressive Insurance coverage was then billed a mixed complete of over $28,000 from two clinics and paid out over $28,000. Nationwide Normal Insurance coverage was billed over $59,000 and paid out over $24,000. Each insurance coverage firms had been billed for bodily remedy not one of the 4 people had been entitled to, in response to a information launch..
“Large thanks to my devoted insurance coverage fraud detectives for monitoring down these people and bringing them to justice,” Patronis mentioned, in response to a ready assertion.
The workplace appears to have extra work to do. Insurify cites “extreme climate occasions” and “rampant insurance coverage fraud,” for the excessive value of Florida automobile insurance coverage.
Whereas nationwide automobile insurance coverage common prices take up about 2.6% of the nationwide median family earnings, the median family in Florida sends about 4.3% of its earnings to automobile insurance coverage, in response to the most recent report from Insurify.
Florida falls behind New York, with the highest-priced automobile insurance coverage, and Nevada in nationwide rankings. The Sunshine State is tied with New York for the price range chew of insurance coverage when households on the median earnings.
Equivalent makes an attempt at reform (SB 464 /HB 653) filed by Republican legislators, Sen. Erin Grall of Vero Seaside and Rep. Danny Alvarez of Hillsborough County, each died in committee.
There’s some hope {that a} bipartisan measure (SB 1002), which Gov. Ron DeSantis signed in 2023, will go a option to carry down insurance coverage premiums and unclog auto glass claims within the courts.
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Florida Politics workers author Jesse Scheckner contributed to this report.
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