New anti-fraud division formed

LANSING — Michigan Gov. Rick Snyder has formed a new division to investigate fraud within the auto insurance, health insurance and banking sectors.

The anti-fraud unit will be housed within the Department of Insurance and Financial Services.

Tuesday’s move follows discussion in the Legislature in recent years about creating an authority to crack down on auto insurance fraud — an effort that has stalled over other proposed changes to the auto no-fault law.

Snyder says fraud is driving up the cost of insurance for all Michiganders. His says the department current has a limited ability to conduct full and complete background checks for those it regulates.

His executive order directs DIFS Director Patrick McPharlin to arrange for appropriate staffing and funding of the anti-fraud unit.