1. State Insurance Trade Associations Annual Conference October 4, 2010 Alan Haskins, Director of Government Affairs Tim Lynch, Director of Government Affairs

2. Mission and Vision Mission: To lead a united effort of insurers, law enforcement agencies and representatives of the public to prevent and combat insurance fraud and crime through Data Analytics, Investigations, Training, Legislative Advocacy (GA) and Public Awareness. Vision: To be the preeminent organization fighting insurance fraud and crime.

3.  Data Analytics  Investigations  Training  Legislative Advocacy (Government Affairs)  Public Awareness NICB Disciplines

5. Medical Questionable Claims

6. Medical QC By State

8. Medical Fraud January 1 – June 30, 2010

9. Major Medical Fraud Task Forces  Florida (Miami) - 2002  New York - 2002  California (Los Angeles) - 2007  Texas (Houston) - 2007  D.C. - 2008  Florida (Tampa/Orlando) - 2010  PA, NJ, & DL (Edison, NJ) - 2010

10. Major Medical Fraud Task Forces What do they do?  Collect and analyze questionable medical fraud claims  Disseminate strategic and tactical alerts to NICB members  Joint investigations  Support prosecutive efforts  License sanctioning actions by state regulatory agencies

11. Key Federal & State Issues

12. Federal Issues  National Motor Vehicle Title Information System (NMVTIS)  Health Care Reform  Cheaper Car Insurance Act

13. NMVTIS  Provides an electronic means for verifying and exchanging title, brand, and theft data among motor vehicle administrations, law enforcement, prospective purchasers, and insurance carriers  NICB appointed to DOJ NMVTIS Advisory Board -Enhancements -Reduce negative impacts on affected industries -Self-funded -Next meeting Oct. 7-8, 2010

15. Health Care Reform  Administration continues to emphasize the need for anti-fraud measures - Directed U.S. Attorneys to increase fraud investigations - HHS to hold regional anti-fraud summits around the country: Las Vegas, Detroit, Philadelphia, New York, Boston, and Los Angeles - Needs effective implementation

16. Health Care Reform Dual approaches to establishing a public-private partnership  Dual approaches to establishing a public-private partnership - First folds partnership into current HEAT Program - Second establishes free standing advisory committee  NICB, CAIF, and NHCAA have expertise that can be of great help to DOJ, HHS and the Administration

17. Auto Fraud Auto Fraud  Cheaper Car Insurance Act of 2010 – U.S. S3546 U.S. Senator Chuck Schumer (D-NY) U.S. Senator Chuck Schumer (D-NY) -Senator Schumer’s response to NY PIP fraud problem: o defines auto fraud o establishes criminal penalties o mandates establishment of anti-fraud task forces by DOJ o authorizes insurers to require pre-inspection -Begin outreach to establish common industry position

18. State Issues State Issues Key States :  Texas Summit - Dallas - October 26, 2010  New York - NY Summit – April 21, 2010  California – Authorizes immunity to share information with the DOI  Florida - Insurance Consumer Advocate Roundtable  Louisiana - Three anti-fraud bills enacted  Arizona - Automobile glass repair

19. State Issues State Issues Key States:  Virginia - Anti-fraud refinements  Pennsylvania - Anti-fraud package  Michigan - “runner/capper” & PIP fraud  Illinois - Towing bill enacted  Kentucky – Anti-solicitation  New Jersey -Information sharing, immunity, rate evasion, regulatory restructuring

20. State Issues State Issues Key States :  Bills successfully defeated - Massachusetts – “Right to Repair” - Colorado – Restricting surveillance - Maine – Defining ALPR’s - Washington – ATPA surcharge - Wisconsin – Access to records  NAIC-NICB-ISO Fraud Bureau Reporting Program - 46 jurisdictions

21. Strategies

22. Strategies Strategies

23. Key Take-a-ways  Data -14% rise in QC first half 2010 QC -46% increase staged/caused accidents -57% increase in slip and fall claims -107% in hail damage claims -527% in auto glass claims  Expertise - Leading industry anti-fraud organization dedicated to the detection, investigation and elimination of insurance fraud and vehicle theft.

24. Strategies Strategies Key Take-a-ways  Government Affairs and Support - Legislative - Regulatory access - Expert witness and testimony Reputation - NICB 100 year history