Morning Briefing: Allstate wins judgment against operators of phony law firms

Allstate wins judgment against operators of phony law firms…Insurance claims defense expected to increase in 2017… IHC Group makes organizational changes in specialty benefits…

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Allstate wins judgment against operators of phony law firms
A court in Los Angeles has ruled in favor of insurance firm Allstate which alleged that some lawyers were allowing fake law firms to use their identities and licenses to make fraudulent insurance claims.

"Submitting even one false insurance claim is fraud and insurance fraud is a crime," says Allstate's Senior Field Vice President Phil Telgenhoff. "Fraud drives up the cost we all pay for insurance by stealing millions of dollars from insurers. This cannot and will not be tolerated in California or anywhere."

Allstate alleged Christina Chang, Christine Suh and other unlicensed persons knowingly engaged in the scheme by renting office space, hiring staff, opening firm bank accounts, obtaining clients, making demands to insurance companies for settlement.

"This is one of the first times I've seen this elaborate of an effort with setting up fake law offices and trying to defraud the industry," says Telgenhoff. "We have seen this type of operation before with shady medical clinics across the country, but this takes the scam to a different level. Rest assured, we will fight fraud wherever it lives."

The verdict in a Los Angeles County Superior Court resulted in a judgment worth more than $11.5 million in favor of Allstate.
 
Insurance claims defense expected to increase in 2017
The coming year is expecting to see an increase in the number of lawyers hired to defend insurance claims according to recruiter Robert Half.

A survey of lawyers in the US reveals that insurance defense ranks just behind commercial litigation as the area of litigation expected to see the greatest opportunities in 2017.

"Law firms in particular are recruiting highly skilled experts with backgrounds in commercial litigation, insurance defense and eDiscovery to help them manage rising caseloads and meet client needs," said Charles Volkert, senior district president of Robert Half Legal.
 
IHC Group makes organizational changes in specialty benefits
IHC Group has made some organizational changes to its full-service specialty health insurance products marketing and distribution company, IHC Specialty Benefits.

“We have now brought all of our brands (HealtheDeals.com, HealtheDeals Advisors, Aspira A Más and PetPlace.com) under one roof, and combined all of our various distribution platforms into one seasoned and coordinated management team,” explained Dave Keller, chief sales and marketing officer, who leads the team alongside COO Brian Dow.

New divisional leaders are: Jeff McCabe (employer group markets); Brad Waldrop (individual and family markets); Mark Hunt (sales, Health eDeals); Dave Keeler (business development); Rick Faucher (Pet Health); and Javier Tejeda-Vera (Hispanic-focused Aspira A Más division.)

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