NU Online News Service, May 14, 11:31 a.m. EDT

The heat is getting turned up on fraudsters in Texas as the state's Department of Insurance is backing the designation of a second county insurance fraud prosecutor and investigator with the aim of adding more in the future.

The Texas Department of Insurance (TDI) has agreed to pay for a new insurance fraud prosecutor and investigator at the Harris County District Attorney's Office.

Mark Hanna, spokesman for the Texas Committee of Insurance Fraud and the Insurance Council of Texas, says Harris County, home to Houston, has been a "hot bed of insurance fraud of all kinds" from auto insurance to workers' compensation.

"I know there are lots of insurance companies who are very happy to have someone to turn to—someone who speaks their language and will not file away their concerns because the resources don't exist," says Hanna. "We've needed someone dedicated to insurance fraud at the attorney's office for a long time."

A similar program between TDI and prosecutors in Dallas County has worked to convict 250 insurance fraudsters, which has resulted in restitution to victims of $7 million.  

Harris County District Attorney Patricia Lykos says insurance fraud has been "an ever-growing problem in Harris County, but it's about to come to an end."

More insurance fraud-focused prosecutors are coming. Hanna says a prosecutor will be announced later this month in Bexar County, home to San Antonio, and other major cities may follow.

The TDI has a fraud bureau, but must refer cases to a prosecutor. This arrangement, paid for through the TDI's budget, gives a point of contact in each county prosecutor's office and the ability to actively prosecute insurance fraud.

Hanna says fraud in Texas costs insurers, and ultimately policyholders, billions of dollars per year. About 10 percent of auto insurance premiums go to fighting or paying for fraud, Hanna adds.

Insurance Commissioner Eleanor Kitzman, who left a similar position in South Carolina for Texas last year, says she is intent on not only seeking the highest restitution and most prison time for those who commit fraud, but she wants their names to be known.

"There will be no confidential settlement," she says. "This will be publicized. This is really not effective unless people know about it. That's our goal." 

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