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Zurik: Questions Surround Attorney General’s Use of Insurance Fraud Funds

BATON ROUGE (WVUE) - An investigative unit made up of three state agencies exists to curb the amount of insurance fraud in the state. But a FOX 8 Investigation found all of the spending by one of those agencies doesn’t seem to be going to insurance fraud cases, in possible violation of the law that founded the unit three decades ago.

The Insurance Fraud Investigation Unit was created in the 1990′s by the Louisiana State Legislature. The money to fund the unit made up of three state agencies – the State Police, Department of Insurance and Attorney General’s Office – comes from a fee assessed on insurance premiums. In setting up the unit, the legislature wrote that the funding for insurance fraud given to each agency “shall be appropriated, administered and used solely and exclusively for purposes of the fraud unit.” Read more...

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