Introduction The Bill was first introduced in the House of Representatives on Jan 27, 1993 by Mr. Dingell AKA Congressman Dingell (US House of Representatives from Democrat served from 1955 to 2015 aged 88) and which was co-sponsored or supported by three other fellow Democrats, Mr. Brooks (a Democratic lawmaker from Texas who served the country for 42 years from 1922 to 2012), and Mr. Bonior (Mei 5, 1993) and Mr. Pomeroy (March 17, 1994). And reported with an amendment, committed to the Committee of the Whole House on the State of the Union and ordered to be printed on the same date. This Act was first cited as The Insurance Fraud Prevention Act 1993 and later it changed to The Insurance Fraud Prevention Act 1994. The Senate and the House of Representatives of the United States of America in Congress assembled, enacted this Bill. The code provides that fraud against insurance companies will be subjected to strong Federal criminal and civil penalties. Insurance Fraud is specifically classified as a crime in all states though a minority states, only criminalize certain types of fraud.

PurposesThe main purpose of this act is - to confront aggressively the problem of insurance fraud to facilitate the detection of insurance fraud - to eliminate the occurrence of such fraud activities through the development of fraud prevention program and to reduce the amount of premium dollars used to pay fraudulent claims.

Whos involved?Under this section, the act clearly stated that:1- Whoever is engaged in the business of insurance / 2- Whoever acting as, or being an officer, director, agent or employee, any person engaged in the business of insurance / 3- is involved in a transaction relating to the conduct of affairs

Are said to be subjected to Federal Criminal and civil penalties.

What was the outcome?So the Insurance Fraud Prevention Act of 1994 - Amends the Federal criminal code to establish penalties to be imposed upon any person engaged in the business of insurance whose activities affect the interstate commerce and who: 1- knowingly, with intent to deceive2- willfully embezzles or misappropriates funds3- knowingly makes a false entry of material4- by threats or force

has given the Attorney General by law, to seek civil penalties for any violation of this act.So what are the civil penalties? As according to the second section of the Act:ConclusionSo why this act is important to the insurance industry?Besides making laws more severe,Legislationhas also come up with a list for management that should be implemented so that companies are better suited to combat the possibility of being scammed. That list includes: Understanding that fraud does exist and that there is a high possibility for it happening. Being fully aware of the dangers and severity of the problem. Understanding the importance of the hiring process and how important it is to hire honest individuals. Learn to deal with the economic side of business. That means putting procedures and policies in place to catch and deal with individuals trying to commit fraud.[47]You can fight backAs a consumer, we have to Stay alert, go-slow and ask questions when facing an insurance transaction that seems suspicious. Contact the authorities with the evidence. View the Coalition's fraud alerts to learn how we can avoid being victimized.With that, Thanks for your attention.Thank You.