New Jersey Questionable Claims 2010-2012

DES PLAINES, Ill., Dec. 18 -- The National Insurance Crime Bureau issued the following news release:

The National Insurance Crime Bureau (NICB) today released its 2010-2012 New Jersey questionable claims referral reason analysis. Questionable claims (QC) are those claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of possible fraud. A single claim may contain up to seven referral reasons. This report analyzes QCs by loss city, core-based statistical area (CBSA), policy type, loss type, policy and loss type combined and referral reasons.

In 2010, there were 1,412 New Jersey QCs referred to NICB from its member insurance companies. In 2011, the number increased to 1,903 and in 2012, it rose again to 2,300--a 63 percent increase over 2010's figure.

The top five cities in New Jersey generating the most QCs last year were Newark (173), Paterson (105), Jersey City (82), Elizabeth, (57) and Trenton (51). The top five CBSAs reporting QCs were New York-Northern New Jersey-Long Island, Philadelphia-Camden-Wilmington, Trenton-Ewing, Atlantic City and Vineland-Millville-Bridgeton. The top five loss types were: personal injury protection, bodily injury, collision, theft and other automobile.

It is important to note that QCs represent a fraction of overall claims traffic. Nationally in 2012, QCs totaled 116,268 out of an overall claims population of more than 70.5 million--or 0.164 percent. The volume of QC referrals can increase or decrease over a given period of time and may be caused by a number of factors, including better reporting by the industry and an increase or decrease in fraudulent activity, etc.

The full report is available here (https://www.nicb.org/File%20Library/Public%20Affairs/NJ-QC-Report-10-12.pdf).

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422), texting keyword "fraud" to TIP411 (847411) or submitting a form (https://www.nicb.org/about-nicb/report-fraud) on our website. Or, download the NICB Fraud Tips app (https://www.nicb.org/public-affairs/nicb-fraud-tips-app) on your iPhone or Android device.

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