House Insurance Committee hears DIFS fraud-unit overview and preview of seven-bill package

Lansing The Michigan House Insurance Committee heard an overview of the Department of Insurance and Financial Services(DIFS) Fraud Investigation Unit and a preview of a bipartisan seven-bill package aimed at strengthening the state's ability to detect, investigate and prosecute insurance fraud.

The presentation was made by Jenny Gies, legislative liaison manager for DIFS, accompanied by Joe Garcia, senior deputy director and general counsel, and Jennifer Kinsey, regional manager who supervises investigators. "The fraud investigation unit was established within the department in September of 2018 by executive order 2018-9," Garcia said, adding that the unit was codified into the insurance code in June 2019 and is located in chapter 63 of the insurance code. Gies said the unit's work seeks to lower insurance costs by addressing fraud, which she said contributes to higher premiums.

The nut graf: DIFS officials told lawmakers the Fraud Investigation Unit (FIU) operates as a criminal justice agency within DIFS, partners with law enforcement, and has referred cases that have led to convictions and court-ordered restitution. Officials previewed legislation intended to improve information sharing, expand covered conduct, and provide prosecutors with additional sentencing tools.

What DIFS reported and…