Fraud Unit News: Undercover Sting Leads to Arrest for Insurance Fraud

Fri, 10/02/2015 - 00:00

Phoenix, AZ – The Arizona Department of Insurance Fraud Unit arrested Donald Parra, 41, of Mesa.  Mr. Parra is the owner of “Precision 1 Auto Glass” (recently re-named to “Family Glass Shop”) located at 1947 North Lindsey Road, #107 in Mesa, AZ.  Mr. Parra was booked at the MCSO jail charged with several felony charges including Identity Theft and Insurance Fraud after making fictitious automobile glass claims to insurance companies.

As part of an undercover investigation of Mr. Parra and his business, Arizona Department of Insurance Fraud Unit investigators were solicited by one of Parra’s employees to make a fictitious claim to an insurance company.  The investigation also revealed Mr. Parra and his employees were filing fictitious automobile glass claims representing themselves as the insureds who had business with their company in the past.  In Arizona, it is a class 6 felony for an auto glass repairer or salesperson to knowingly submit a false claim to an insurance company if the services were not provided.

In addition to Mr. Parra, two other suspects were located, taken into custody and subsequently released after being interviewed.  To date, no charges have been filed against these suspects.  However, several computers and numerous other items were seized as evidence during a search warrant served on the business.

“All Arizonans should be proud of the great work done by the Fraud Unit,” said Arizona Acting Director of Insurance, Darren Ellingson. “The Fraud Unit’s efforts help reduce the overall cost of insurance for every Arizonan, while sending notice to other bad actors that Arizona will not tolerate insurance crimes.”

 

About the Fraud Unit

The Fraud Unit was established in the Arizona Department of Insurance in 1994 to deter, investigate and facilitate convictions of insurance fraud. By deterring fraud, the Fraud Unit reduces the inflationary impact of fraud that is passed on to consumers through higher costs of insurance products. If you believe you are a victim of insurance fraud or know of someone committing insurance fraud, please contact the Arizona Department of Insurance Fraud Unit at 602-364-2140.

About the Arizona Department of Insurance

The Arizona Department of Insurance, an agency of the State of Arizona, is responsible for the education and protection of insurance consumers and for oversight of the insurance industry in the state.  If you need assistance with your insurance, please contact the Arizona Department of Insurance Consumer Affairs Division at 602-364-2499 (metro Phoenix) or 800-325-2548 (outside Phoenix).

PDF icon Press Release 20151002 - Donald Parra.pdf
Tue, 09/10/2019 - 14:27

Warning - Phishing Scam

We are aware of a phishing scam targeting insurance professionals claiming that the National Association of Insurance Commissioners received a complaint that the professional submitted a falsified claim. This fraudulent email displays the NAIC and CIPR logos, can originate from what appears to be an naic.org or gmail.com email account, and instructs the recipient to click on a link to download the complaint notification.

Certain antivirus products will detect this as a malicious email.  If you receive a similar email and have any concerns, contact the NAIC Service Desk at (816) 783-8500 or [email protected].
Health Insurance Telemarketers Annoy; Pose Fraud Risks

Phoenix, AZ—The Arizona Department of Insurance (ADOI) wants to make citizens aware of scams involving aggressive telemarketers attempting to sell health insurance plans and, in some cases, attempting to gain personal and financial information possibly for criminal purposes.

The ADOI has received complaints from people who received multiple phone calls, robocalls, and text messages claiming to be from the National Health Enrollment Center, the Healthcare Enrollment Center and from Healthcare.gov. Some people report that they were contacted multiple times a day, sometimes from different phone numbers, despite requests to be placed on the companies' do-not-call lists. Additionally, some people report having been asked to provide health insurance enrollment information, including such information as address, date of birth, social security number, and personal health information that, in the wrong hands, could be used in identity theft or other fraud schemes.

Arizona citizens who have received persistent phone calls or text messages from these or other callers attempting to sell them health insurance are encouraged to file a complaint with:

Federal Trade Commission (FTC)

Arizona Department of Insurance Consumer Protection Division

  • Visit https://insurance.az.gov/consumers
  • Or call the ADOI’s Consumer Protection Hotline at 602-364-2499, or 1-800-325-2548 if calling within Arizona but outside Maricopa County.

We can all take steps to avoid becoming victims of fraud.

  • Never provide someone who calls you with your bank account number, your social security number, your credit card number, or your personal health information. If you are asked to provide this information, hang up.
  • Research the insurance agent and insurance company you are considering using by finding their license information through the ADOI’s License Search webpage (https://insurance.az.gov/license-search), and use contact information in the license record to contact them. Be skeptical and do research.
  • For information about insurance available from Health Insurance Marketplace, visit the Healthcare.gov website or call Healthcare.gov directly at 1-800-318-2596. The Arizona Department of Insurance is a state agency dedicated to protecting Arizona citizens and businesses by promoting a safe, strong, innovative and competitive insurance marketplace.

The Arizona Department of Insurance is a state agency dedicated to protecting Arizona citizens and businesses by promoting a safe, strong, innovative and competitive insurance marketplace.
FY 2020 INSURER ANNUAL ASSESSMENT INVOICES ARE AVAILABLE

Click here to view invoices for annual assessments to insurance companies and service companies. Payments are due August 9, 2019. 

Follow the instructions on the first page of the document to locate the invoice that applies to your company.  

Please consider using the OPTins "Assessment" account to pay your assessment invoice.  
Arizona Sample Notice of Continuation Coverage (Mini-COBRA)

Pursuant to ARS § 20-2330, a health benefits plan issued or renewed after December 31, 2018, must allow an enrollee and any qualified dependent to continue coverage after a qualifying event.  The law requires a small employer (with an average of at least 1 but fewer than 20 employees) to notify an enrollee in writing of the right of the enrollee and any qualified dependents to continue coverage under the employer's health benefits plan upon an enrollee's qualifying event.  Pursuant to Subsection C of the law, the Department has prepared a sample notice of coverage continuation form and is making the sample available on its website.  A small employer that uses, properly completes, and timely issues the Department's form is presumed to satisfy notification requirements.  On January 23, 2019, the Department uploaded a new version of the form.
Regulatory Bulletin 2019-01

Use of Credits and Premium Rebates in the Health Insurance Market