New York state’s Senate passed three bills to fight auto insurance fraud. These measures will now move to the state Assembly for consideration. According to the New York Senate, auto fraud schemes cost New Yorkers more than $1 billion a year.The bill would enable insurance companies to retroactively cancel policies taken out by people who commit auto fraud. This would allow an insurance company to retroactively cancel an auto insurance policy in the first 60 days if the initial premium payment is not honored by a bank due to insufficient funds, non-existence of a bank account, or unauthorized use of a bank account. The second bill would establish a new felony-level crime of staging a motor vehicle accident. The thrid bill is against the runners. A “runner” is a person who receives money for obtaining clients or patients to participate in insurance fraud. read more..
(Reference: Insurance journal March 23, 2012)
No comments:
Post a Comment