Legislative News
05/09/2008
* The Louisiana legislature is looking at several fraud bills…Forging documents: HB 241 and HB 333 would make it a felony and specific insurance fraud to forge insurance documents such as auto-insurance, health-insurance or workers comp cards…Tackling owner giveups: The statehouse also is going after owner giveups. HB 413 would require people to file an affidavit when reporting their vehicle stolen. An affidavit creates an evidentiary trail if people dump their vehicles for insurance money. Signing a legal document also may make some people think twice about making bogus vehicle-theft claims with their insurers. The House has passed the bill. The Senate now debates the measure, which is similar to a 2007 Arizona law…Extending fraud bureau: The House is debating extending the insurance fraud unit within the state police until 2012 (HB 1147). The unit is scheduled to sunset at the end of 2008.
* The Florida legislature passed a bill raising criminal penalties for agents who target seniors for schemes involving churning life policies and annuities. Fines under SB 2082 would be $30,000 for each willful scam (currently $20,000), up to a maximum aggregate of $150,000 (currently $100,000). Churning also would rise to a third-degree felony, and to a second-degree felony with stiffer sentences for agents who habitually bilk seniors. Churning involves an agent earning a large commission by conning victims into giving up whole life policies with built-up value to buy new coverage they don’t need.
05/02/2008
* The Louisiana House overwhelmingly approved a bill making it a crime to forge or produce bogus auto-insurance cards. HB 333 now goes to the Senate. The legislature stays open through June, so there will be plenty of time for action on the bill.
* Two governors have signed anti-fraud bills into law. In Iowa, House File 2555 requires insurers to report schemes involving insurance applications. In Minnesota, Senate File 2765 works to close down recruiting of crash victims for fake injury claims. The new law restricts medical providers from contacting crash victims face to face, via email or by telephone unless the crash victim voluntarily initiates the contact. Providers only could use ads such as billboards or mail flyers, and the ads must be clearly labeled as such.
* The Vermont House and Senate are ironing out the differences in a major workers comp reform package. SB 345 passed both chambers with slightly different provisions. The bill includes a provision — not under debate — requiring workers comp insurers to file an anti-fraud plan with the state department of labor. The plan covers bogus claims by workers, and employer premium scams such as misclassifying workers and lying that their business performs lower-risk work than it really does.
Note: Texts of anti-fraud bills are available on the coalition's website here.
04/25/2008
* Maryland’s governor signed into law a measure requiring fraud warnings on insurance claims and applications. The legislature overwhelmingly approved HB 404 during the short 2008 session. Maryland now joins more than 30 other states with a similar law. “Fraud warnings are a deterrent in the fight against insurance fraud," the coalition’s Howard Goldblatt testified before the legislature in support of the bill in February.
* The New York legislature is considering dumping a 1970s-era law requiring property insurers to have property-insurance applicants in urban areas fill out extra forms designed to see if the applicants are arson risks. SB 7502 would repeal that law. The current rule is burdensome for insurers, and the fraud plans New York rquires insurers to provide can better identify arson risks, supporters of repeal argue.
* The Florida legislature is debating raising criminal penalties for agents who target seniors by churning their life policies and annuities. Fines would be $30,000 per scam (now $20,000), up to a maximum aggregate of $150,000 (currently $100,000). Churning also would rise to a third-degree felony, and to a second-degree felony with stiffer sentences for agents who habitually bilk seniors. Churning involves an agent earning a large commission by conning victims into giving up whole life policies with built-up value to buy new coverage they don’t need. The Senate has passed SB 2082. The House is reviewing the Senate version and its companion HB 1003. The legislature is scheduled to adjourn for the year by the end of next week.
04/18/2008
* The Minnesota legislature approved a bill to protect victims of auto accidents from medical providers who solicit the victims for bogus treatment. Under Senate File 2765, medical providers couldn’t contact crash victims face to face, via email or by telephone unless the crash victim voluntarily initiates the contact. Providers only could use ads such as billboards or mail flyers, and the ads must be clearly labeled as such. The governor is expected to sign the bill.
* The Iowa legislature has passed a bill expanding the state’s mandatory-reporting law. Current law requires insurers only to report suspected bogus claims to the fraud bureau. Under House File 2555, insurers also would report schemes involving insurance applications. This provision was a part of a comprehensive insurance reform package. The governor is expected to sign the measure.
* The California legislature is considering extending the assessment auto insurers pay to help fund a variety of anti-fraud efforts. The current assessment on auto policies written in the state is scheduled to sunset in 2010, but AB 2143 would extend the assessment to 2018. Insurers don’t oppose the extension, but do want to see some proof that the funded anti-fraud programs actually are working. In other words, is their money being put to good use? The bill is similar to a draft report by the insurance commissioner's anti-fraud task.
04/11/2008
* Illinois would set strict licensing rules for public insurance adjusters if the legislature approves HB 5489. The bill sets both the requirements to become a public adjuster, and criteria for the insurance department to discipline adjusters. The department would have authority to revoke the licenses of adjusters who violate the state’s license requirements or are convicted of a crime.
* The Florida legislature is debating requiring that a contract between professional employer organizations (PEOs) and their client businesses specify who provides workers comp coverage. One benefit of HB 239 is that it creates an evidentiary trail if a PEO fraudulently fails to provide coverage. PEOs provide a variety of services for businesses, including comp coverage. Crooked or fake PEOs, however, have bilked businesses by providing bogus coverage while pocketing the premiums.
Note: Texts of anti-fraud bills are available on the coalition's website here.
