Insurance Fraud NEWS

Coalition Against Insurance Fraud

Rep. Schroeder devoted to shedding light on car insurance fraud

February 21, 2019, Lansing, MI — Fraud committed by insurers and individuals within the state’s no-fault car insurance system would be exposed under a new plan introduced this week by state Rep. Andrea Schroeder.

Schroeder’s legislation calls for establishing a fraud authority to investigate unfair claims and settlement practices to help shed light on insurance providers and drivers committing fraudulent practices. Schroeder said her plan should be considered as part of a broader solution to end Michigan’s tenure as the state with the highest car insurance premiums in the nation.

“Car insurance reform is a top priority shared by drivers back home and the 100th Michigan Legislature,” said Schroeder, of Independence Township. “It’s imperative we make important strides toward tackling fraud within our state’s no-fault car insurance system as part of those reforms. Rampant fraud is a large factor responsible for driving up costs for innocent parties, and exposing it within our current car insurance setup will help alleviate some of the burdensome rates motorists face.”

The authority would develop an annual report for the Legislature that details unfair claim practices of Michigan insurance companies. It would also assess the impact of fraud and unfair claims, summarize prevention programs and outline allocations. The authority would be subject to the Freedom of Information Act.

House Bill 4202 now moves to the House Insurance Committee for further consideration.

Source: Michigan House Republicans

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