An internal audit of the Houston-area motor vehicle insurer that handled an “insurance fraud” claim found it “should have reviewed” the claim, an official said Thursday.
A whistleblower at Morris Insurance Agency told the Texas Transportation Commission that the agency “should be required to review the claim before it is filed” with the Texas Department of Insurance, according to a document obtained by the AP.
The whistleblower said he had been tasked with reviewing claims that were filed on behalf of two motorcyclists.
Morris has not publicly responded to the whistleblower’s allegations.
The inspector general’s office said Morris had been asked to review claims that the department had flagged for possible fraud.
The investigation was initiated after the inspector general reviewed the claims and concluded they were fraudulent.
The whistleblowers told the state transportation commission they thought the claim was fraudulent because the motorcyclist who filed the claim didn’t have insurance.
The agency also said the motorist had not submitted insurance documentation when he filed the claims.
The inspector general did not have authority to conduct a criminal investigation.
The Inspector General’s Office said Morris should have reviewed the claim to determine if it should be included in the agency’s fraud prevention program.
Morris Insurance Agency spokesman Scott Williams told the AP that Morris was not required to conduct any investigation of the whistleblower.