For Immediate Release
Contact: Cindy Gittelsohn
Jericho Communications
212-645-6900 x 109
PROGRESSIVE FILES CIVIL SUIT AGAINST OWNERS
OF MULTIPLE MEDICAL CLINICS IN SOUTH FLORIDA
Auto insurer fights to keep rates down for all consumers

BROWARD COUNTY, Fla. (July 16, 2003) -- Six subsidiaries of The Progressive Corporation filed a civil suit today against the owners of several South Florida clinics and diagnostic facilities, along with six people who worked for the clinics. The suit, filed in the Circuit Court of Broward County, alleges that Winston Hernandez and Humberto Bogani, owners of Total Rehabilitation and Medical Centers, Inc., American Diagnostic Institute, Inc., All Mobile Diagnostic, Inc., and Prosper Diagnostic Centers, Inc., with the aid of those cited in the suit, submitted bills to Progressive for medical services that were not performed by medical doctors and for services that were medically unnecessary.

In addition, the suit alleges Hernandez and Bogani, neither of whom is a medical professional, violated several Florida statutes, including one that restricts clinics from self-referring patients. The suit also alleges that Hernandez and Bogani sent nearly all of their patients to diagnostic facilities that they owned for expensive and unnecessary diagnostic tests, such as MRIs, spinal ultrasounds, and nerve conduction velocity tests.

Progressive is seeking monetary compensation of more than $2.3 million.

“As appalling as it sounds, it happens every day in this state,” said Karen Pelot, Progressive special investigations unit manager for Florida. “And it’s consumers who ultimately pay the price for auto insurance fraud. Auto insurance rates are based on each company’s cost of doing business, and fraud and abuse drives up the cost of insurance for all consumers. If the company is presented with fraudulent claims, everyone in the state is paying that price.”

The Florida Department of Insurance Fraud estimates that fraudulent insurance claims cost each family in the state an additional $1,414 a year in total insurance costs.

Pelot said: “We will continue to aggressively fight fraud in Florida so that we can keep the cost of auto insurance down. If you are thinking about committing auto insurance fraud, don’t try it with us. We aggressively investigate, try and prosecute people involved in fraud.”

The suit alleges that Hernandez and Bogani operated clinics in Tamarac, Pembroke Pines, Homestead, and West Palm Beach for the past five years and employed both licensed and unlicensed physician assistants.

The Progressive group of insurance companies (NYSE:PGR), in business since 1937, is the third largest auto insurance group in the nation and in Florida and provides drivers with competitive rates and 24/7, in-person service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent insurance agencies. The Progressive Corporation, the holding company, has headquarters in Mayfield Village, Ohio. More information can be found at progressive.com. In Florida Progressive employs more than 3,200 and is represented by more than 1,800 independent insurance agencies.