State legislators weigh measures to fight auto insurance fraud

April 18, 2012

The Claims Journal (4/17, Goldblatt) reported that lawmakers “are trying to squeeze crash rings that bedevil auto insurers with bogus injury claims in several heavily populated states.” It identified Florida (termed “ground zero for no-fault fraud”), Michigan and New Jersey as the legislative hot spots, and said that targets included “staged crash rings and rogue clinics.” Florida included some anti-fraud measures, including tighter clinic registration, in a larger no-fault bill passed March 10. New Jersey is considering measures to restrict solicitation tactics, limit access to police accident reports and make it a crime to reduce insurance costs by lying about the location where a vehicle is garaged. Michigan has already enacted a law making it a crime to recruit, or hire recruiters, for fraudulent crash rings, and a bill to use auto registration funds to create a new auto fraud prevention authority is being considered.