Frequently Asked Questions
What are the primary functions of the Louisiana Automobile Theft and Insurance Fraud Prevention Authority?
The Louisiana Automobile Theft and Insurance Fraud Prevention Authority (LATIFPA) is a public agency, created under Act 711 of the 2004 Regular Session of the Louisiana Legislature. Its purpose is to combat motor vehicle insurance fraud, including fraud by theft and other criminal acts, through a statewide cooperative effort of generating funds to enhance or finance fraud prevention efforts. Act 711 also establishes an Automobile Theft and Insurance Fraud Prevention Authority Fund within the LATIFPA. This specially created funding mechanism will be used to collect and disburse funds through a grant process for the purpose of reducing motor vehicle theft and insurance fraud.
Where can I find the law that created the Louisiana Automobile Theft and Insurance Fraud Prevention Authority?
The Louisiana Automobile Theft and Insurance Fraud Prevention Authority (LATIFPA) is a public agency, created within the Louisiana Department of Insurance, by Act 711, of the 2004 Regular Session of the Louisiana Legislature. The relevant statute is LSA – R.S. 23:3201, et al.
What are the statistics for car thefts in Louisiana?
According to the Federal Bureau of Investigation (FBI) Uniform Crime Report, there were more than 1.1 million motor vehicle thefts in the United States in 2007, with an estimated value of approximately $7.4 billion dollars. In Louisiana, there were 15,180 vehicles reported stolen, ranking Louisiana 21st in the national in actual number of vehicles stolen.
The report also indicates that the nationwide motor vehicle theft rate per 100,000 inhabitants was 363.3. In Louisiana, the theft rate per 100,000 inhabitants decreased from 364.8 in 2006 to 353.6 in 2007.
Where are the auto theft problem areas in Louisiana?
According to the FBI 2007 Uniform Crime Report, New Orleans was ranked highest in Louisiana for motor vehicle theft offenses known to law enforcement, reporting 3,190 motor vehicle thefts. Baton Rouge was next, reporting 1,179 motor vehicle thefts in 2007. Ranked third in motor vehicle theft offenses known to law enforcement was Shreveport, reporting 1,101 motor vehicle thefts.
What are the different types of auto theft?
Joy riding, opportunity theft, transportation out of the country, theft by juveniles, support addictions, member of an organized theft ring, connections with other crimes and supply “Chop Shops” with parts.
What are the different types of insurance fraud?
Auto insurance fraud, catastrophe claim fraud, staged vehicle accident fraud, arson claim fraud, auto collision repair fraud, identity fraud, homeowners’ fraud, workers’ compensation claim fraud, health care benefits fraud and life insurance claim fraud.
What are some of the most common insurance fraud occurrences?
Insurance fraud steals $80 billion every year according to the Coalition Against Insurance Fraud. Property/casualty insurance fraud is a crime that costs insurers, and ultimately their customers, an estimated $29 billion a year according to the Insurance Information Institute.
Common frauds include “padding” or inflating actual claims; misrepresenting facts on an insurance application; submitting claims for injuries or damage that never occurred and “staging” accidents.
Fraud is a deliberate deception practiced so as to secure unfair or unlawful gain. Insurance fraud can be “hard” or “soft.”
Hard fraud occurs when someone deliberately fabricates claims or fakes an accident. Criminals are using increasingly sophisticated electronic schemes to defraud insurance companies.
Soft insurance fraud, also known as opportunistic fraud, occurs when normally honest people pad legitimate claims or intentionally understate the number of miles they drive each year or, in the case of business owners, list fewer employees than they have or misrepresent the work they do in order to get a lower premium.
Those who commit insurance fraud range from large criminal organizations that steal large sums of money through fraudulent business activities and insurance claim mills, to professionals and technicians who inflate the cost of services or charge for services not rendered, to ordinary people who just want to cover their deductible or view filing a claim as an opportunity to make a little money.
A study by the Insurance Research Council in 1996 found that one-third of all bodily injury claims for auto accidents contain some fraud. Most of the bodily injury claims identified as fraudulent included “padding” or “build up” exaggeration of injuries based on actual accidents.
Fraudulent workers’ compensation claims often involve actual workplace injuries that the worker exaggerates to get paid work leave or other benefits. In a smaller percentage of cases, workers fake those injuries entirely or claim that an injury occurred in the workplace when it really happened elsewhere.
Arson for profit is one of the most serious and dangerous types of insurance fraud. It involves deliberately setting fire to a building, vehicle or other piece of property to collect insurance benefits for lost property and valuables, some of which may never have existed.
Life insurance claim fraud involves people faking someone’s death in order to collect life insurance policy benefits.
Health care benefits fraud occurs when unscrupulous doctors, medical professionals or lawyers bill insurance companies for tests, x-rays, office visits and other services that never took place.
Catastrophe fraud occurs after natural disasters such as tornadoes and hurricanes. People will bill insurance companies for their losses, exaggerating the degree of damage or injury so they can collect more benefits.
What types of programs will the Louisiana Automobile Theft and Insurance Fraud Prevention Authority (LATIFPA) fund to enhance auto theft reduction/fraud prevention/apprehension/prosecution and public awareness?
The Authority awards three types of grants.
Law Enforcement Grants will be awarded to state agencies, local governing authorities and law enforcement agencies to promote more efficient and effective law enforcement of vehicle theft investigation, enforcement and prevention through the establishment of automobile theft enforcement teams and other detection/apprehension devices and programs.
Funds may also be awarded to state, parish and municipal law enforcement agencies for the purpose of promoting more efficient and effective law enforcement activities of insurance fraud investigation, enforcement and prevention and enforcement efforts, targeting areas of the state that have large motor vehicle theft problems.
Prosecution Grants will be awarded to prosecutorial agencies within the State of Louisiana to enhance the prosecution of vehicle theft and insurance fraud through programs designed to increase the number of vehicle theft and insurance fraud cases by dedicating funding for the hiring of prosecutors, investigators and analysts to work exclusively on those cases specific to vehicle theft offenses and other offenses of insurance fraud.
Public Awareness/Fraud Education and Prevention Grants will be awarded to state agencies, local governing authorities and law enforcement agencies to promote public awareness and community and student education on vehicle theft prevention and insurance fraud.
How can I make an application to receive grant funds under the Louisiana Automobile Theft and Insurance Fraud Prevention Authority?
For information about receiving grant funds under the Louisiana Automobile Theft and Insurance Fraud Prevention Authority grant award programs you may contact Denise Cassano at (225) 342-0819, dcassano@ldi.state.la.us or Kevin Smith at (225) 219-0452, ksmith@ldi.state.la.us
What other states have an Auto Theft and Insurance Fraud Prevention Authority?
Colorado, Michigan, Illinois, Texas, California, Florida, Maryland, Rhode Island, Pennsylvania, Arizona, New York, Virginia and Minnesota.
How can I make a donation or provide other assistance to the Louisiana Automobile Theft and Insurance Fraud Prevention Authority?
The Authority may solicit and accept gifts, grants, donations, loans and other assistance from any person or entity, private or public. The Authority may also solicit and accept gifts, grants, donations, loans and other assistance from state or local governments or any agency thereof. Any monetary contributions made to the Authority are to be made payable to the “Automobile Theft and Insurance Fraud Prevention Authority Fund,” a fund established in the State Treasury or you can donate funds to LATIFPA on our website.
Donations mailed to our office would be sent to:
Louisiana Automobile Theft and Insurance Fraud Prevention Authority
Louisiana Department of Insurance
P. O. Box 94214
Baton Rouge, Louisiana 70804-9214
If you need further assistance about making a donation to the LATIFPA you may contact:
Denise Cassano, Director
Louisiana Automobile Theft and Insurance Fraud
Prevention Authority
Louisiana Department of Insurance
1702 North Third Street
Baton Rouge, Louisiana 70804
(225) 342-0819
dcassano@ldi.state.la.us
Fax: (225) 342-1632
Kevin J. Smith, Assistant Director
Louisiana Automobile Theft and Insurance Fraud
Prevention Authority
Louisiana Department of Insurance
1702 North Third Street
Baton Rouge, Louisiana 70804
(225) 219-0452
ksmith@ldi.state.la.us
Fax: (225) 342-1632