Insurance Fraud by Telemarketers Targeted in Texas

The chairman of the Texas Committee on Insurance Fraud says telemarketers continue to harass the victims of auto accidents whether they have been injured or not. The group is endorsing a bill being introduced in the Texas House of Representatives that restricts telemarketers from purchasing crash reports from police departments for the first 30 days after the accident.

Telemarketers’ enticement of free medical and legal care is not aimed at benefiting the crash victims, says Dennis Devlin, chairman of the Texas Committee on Insurance Fraud.

“It’s getting out of hand and it’s time for legislation to bring this criminal practice to a halt,” Devlin said. “Telemarketers will use whatever tactics are required to get the victims of auto accidents into the offices of participating chiropractors and other health providers. Oftentimes, the victims think they are required to go there for treatment to get their claim settled. It’s outright criminal and it’s auto policyholders who are paying for it.”

Devlin pointed to a recent advertisement in San Antonio where telemarketers are recruiting people by telling them they can make $300 in 10 minutes (www.300easy.com). The new recruits are given the addresses of recent accident victims and they go to the victim’s homes in an attempt to solicit them to visit a participating health provider.

State Representative Todd Smith of Bedford has introduced HB1634 which would prevent telemarketers from purchasing crash reports from police departments for the first 30 days after the accident. The legislation has been endorsed by the Texas Chiropractic Association and the Texas Committee on Insurance Fraud.

Devlin said telemarketers buy the crash reports in bulk from local police departments and then screen the reports to find crash victims who would be most susceptible to seeking some kind of treatment whether they were injured or not. Oftentimes, crash victims will receive multiple calls just days after a crash urging them to visit a certain health provider. Once there, the crash victims are offered free legal advice and free medical care which extends as far as the insurance coverage will carry them.

The Texas Committee on Insurance Fraud consists of a group of concerned representatives of the insurance industry, state and county government, as well as Texas and national anti-fraud organizations who share a common goal in fighting insurance fraud.

Source: Texas Committee on Insurance Fraud