Del Papa seeks to beef up fraud unit

Thursday, Jan. 4, 2001 | 10:30 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Attorney General Frankie Sue Del Papa wants more staff in her nine-employee insurance fraud unit, and she wants the industry to pay for it.

Del Papa said Wednesday that the fraud unit, which protects insurance companies against bogus claims and other fraud, is "in desperate need of money just to continue operating at its current staffing level."

She supports a bill that has been proposed by Assemblyman Joe Dini, D-Yerington, which stipulates insurance companies would be assessed on a pro-rata sliding scale based upon the amount of premiums they collect.

Dini's legislation would also give Del Papa's office the primary jurisdiction to prosecute insurance fraud, provide subpoena power during an investigation of a fraud case, allow the guilty party to be assessed the cost of the investigation and prosecution if convicted and establish that insurance companies are victims for the purposes of restitution.

Del Papa said the National Insurance Crime Bureau estimates the average American household pays $300 a year in additional premiums due to insurance fraud.