Antitrust regulator in the United Kingdom to begin motor insurance rate inquiry

An antitrust regulator in the U.K. is beginning a probe into the increasing private auto insurance premiums in the country, as a precursor to actions that may be taken to alter and better the way the marketplace functions. The Office of Fair Trading (OFT) will examine evidence regarding the increases in price that occurred annually over a five year period and will work with the Financial Services Authority and the Ministry of Justice throughout this investigation. The OFT says that it will release its findings in December. According to a…

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Zurich American takes Sony to court over data breach claims

A new court case between the Zurich American insurance company and Sony – its client – may set a precedent for future decisions made regarding an organization’s liability and coverage at the time of a data breach. The insurer has stated that it will not cover Sony’s costs for the many class-action lawsuits that have occurred following the massive database breaches it experienced earlier in 2011, and is seeking the support of the courts for its decision. Sony has already reported that it anticipates that the direct financial cost of…

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Why are Michigan car insurance rates highest on average?

According to a new national survey conducted by Insure.com, Michigan is home to the highest average car insurance premiums in the U.S., followed closely by Louisiana and Oklahoma. Insure.com compiled data from six of the largest auto insurance providers in the nation and more than 2,400 vehicles from across 10 zip codes in each state. The company conducts this survey annually and lists the results for all to see on their website. The average yearly premium for car insurance in Michigan rose by $443 according to the survey, up from…

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Kentucky passes bill in hopes to lower fraud activity

The legislative department of Kentucky passed a bill that regulates the requirements of the federal government tax requirements on insurance for surplus lines as well claims for auto personal insurance that involve fraud. The bill was passed as the end of the legislative session is getting near. A measure was submitted by the lawmakers regarding lawyers who immediately get in contact with victims of car accidents offering their services. Called HB 382, this measure does not allow any unauthorized individual to contact a victim of a motor vehicle accident within…

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The business of fraudulent insurance claims

Conseco Life rate increase shot down

Today, there are some that make a living specializing only in insurance fraud by submitting doctored up insurance claims. The false claims received may include life insurance, third-party policy, personal damage and car theft.  In many cases, the claim amounts asked for are considerably higher than the injuries, damage or loss that occurred – this can raise a red flag to potential wrong doing. Life insurance fraud is when someone makes false claims about faking an injury or death.  The false documentation used is usually police reports, medical cards, marriage…

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