Yesterday, the New York Superintendant of Insurance and New York Attorney General Eliot Spitzer announced a 100-count indictment was filed against health-care providers and attorneys, among others, for a fraudulent scheme against insurance companies through the state’s No-Fault Law. The financial consquences of fraud schemes like this one go beyond the actual “losses” that insurance companies paid to the defendants. Insurance companies expend a large amount of money on loss adjustment — i.e., hiring attorneys to defend these claims. The amount of claims in which a person gets into a minor fender bender or invents such as situation and then tries to collect No-Fault benefits is staggering. New Yorkers will not only pay for frauds such as this one in higher premiums, we’ll also see additional fees tacked onto our automobile insurance bills to combat the problem: see earlier post.