With auto insurance fraud becoming a major concern in Florida, a number of law enforcement agencies, business associations and state resident groups have come together to form the Gear Up Florida coalition. The coalition aims to combat fraud in the state and help protect consumers from the havoc it can cause on their finances. Insurance prices in Florida have been rising due to staged car accidents in recent years. The coalition believes that the primary cause of this lies in the state’s no-fault auto insurance laws. Though insurers often get…
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Allstate files $5 million lawsuit in New York as a result of fraud
Allstate Insurance is looking to recover some $5 million in New York that has been lost due to fraud. The company has filed a lawsuit targeting 21 individuals, 17 of which are being accused of misrepresenting public entities. The insurer claims that these people have continuously submitted fraudulent claims on behalf of corporation that were owned and operated by laypersons, as opposed to licensed professionals. The insurer notes that fraud is one of the primary reasons rates have been rising in the state in recent years. Allstate has filed some…
Read MoreNo-fault insurance bill arrives at the Michigan Legislature
Michigan’s Legislature has begun reviewing a number of bills that would transform the state’s auto insurance laws. State lawmakers have been attempting to confront the issue of excessive auto insurance rates and stem the tide of fraud that is inundating the streets. Amongst a sleuth of new regulations that would curb rate hikes, legislators will be hearing a bill regarding changing the state’s auto insurance into a no-fault system. The bill has already garnered a breadth of support from consumer advocacy groups. Currently, Personal Injury Protection (PIP) insurance is required…
Read MoreMichigan Senate bill aims to restrict auto insurance injury benefits
According to the results of a study that were recently released, there would be “potentially disastrous economic impacts” if there were to be a cap to the personal injury benefits under the state’s no-fault insurance law. The research, which was performed by the Anderson Economic Group for the Coalition Protecting Auto No-Fault, looks into the possible outcome of a bill before the Michigan Senate that had bipartisan support. This bill was sponsored by senators Virgil Smith (D-Detroit) and Joe Hune (R-Whitmore Lake) and would permit a cap as low as…
Read MoreFlorida Legislature may be looking to change how the state’s insurance industry works as fraud continues to grow unabated
According to experts, Florida’s auto insurance industry is currently facing the possibility of changes or the outright elimination to the no-fault system, which may provide drivers who are well-insured with an appealing decrease in premiums, but may also increase the price of basic policies. In Florida, drivers must have at least $10,000 in coverage for personal injury. However, Governor Rick Scott has stated that he would prefer to make this an optional protection. Personal injury protection (PIP) system critics are saying that scam artists are provided with incentive to stage…
Read MoreMinnesota no fault insurance system may crack under pressure
Minnesota’s no-fault auto insurance law has been under fire recently. Opponents of the law have been trying for some time to repeal the legislation, with their latest attempt again being overruled today. However, the state’s Senate committee approved a number of amendments to the law that may curb legislators drive to repeal it. The committee will also be examining alternatives to the law that will favor insurance companies by limiting payouts. The number of underinsured and uninsured drivers in the state is rising, according to Deputy Senate Majority Leader Geoff…
Read MoreKentucky 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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