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FLORIDA
The Florida State Legislature has inaugurated a new online service – free to all except for toll charges. Called “Online Sunshine,” the computerized bulletin board service (BBS) is designed to provide updated information about legislative happenings. The BBS has the latest details on bills filed with either chamber, both the house and senate rules and the complete text of the state’s constitution and laws.
The online service is available between 7 a.m. and 11 p.m., seven days a week. Users are limited to 30-minute sessions. Call (904) 488-1945 via modem for access.
GEORGIA
The Georgia state legislature has established a Special Insurance Fraud Fund for fraud investigation and prosecution. The industry-financed fund allows for the appointment of special prosecuting attorneys for the prosecution of insurance fraud cases. Insurers will now be required to make personnel and other files available to agencies investigating and prosecuting fraud cases in exchange for immunity.
HAWAII
Insurance fraud in Hawaii will become a specific crime, and the Attorney General’s office will incorporate a new fraud unit – if a recent bill passes through the state legislature. If established, the unit would investigate claims and insurer fraud. The measure, however, does limit acts of insurer fraud – to acts that are defined as fraudulent by the Coalition Against Insurance Fraud. The bill would also offer immunity to those providing
information regarding suspicious claims to any fraud-fighting agency.
IDAHO
Specific licensing requirements for insurance agents and adjusters will be required in Idaho if a recent measure is approved by lawmakers. Anyone acting as an adjuster without licensure would be penalized, and licenses would be denied to those previously found guilty of a felony or crimes involving “moral turpitude.” The measure would also require any agent or broker found guilty of a felony or crimes involving fraud or theft to
inform the director of insurance within two weeks of the conviction date.
MARYLAND
Maryland’s new governor introduced a sweeping proposal including provisions for a staff increase in the state’s insurance fraud unit, as well as plans for relocating the unit from the governor’s office to the insurance department. If approved by the legislature, the measure would also grant immunity to those reporting fraud. Assessments on insurers would fund the unit. The Coalition Against Insurance Fraud recommended stronger provisions for civil immunity, but offered overall support for the bill.
MASSACHUSETTS
Legislation to increase penalties for unfair and deceptive practices in the insurance industry is pending in Massachusetts. The commissioner would be authorized to suspend or revoke the license of anyone found guilty of these practices. Further penalties would include fines of up to $5,000 for each violation and provide for restitution.
MONTANA
The Montana General Assembly recently enacted the Insurance Fraud Protection Act. Sponsored by Senator Rick Holden, the legislation contains a strong fraud-reporting immunity provision.
NEW HAMPSHIRE
It soon may be against the law in New Hampshire to provide erroneous residential information to automobile insurers. The measure, recently introduced before lawmakers, prohibits insurance coverage to those living outside the state. If the bill passes, every auto insurance applicant would be required to sign a statement verifying residency. Violators would face up to a year in jail and a $2,000 fine.
PENNSYLVANIA
On March 1, 1995, a new Fraud Prevention Act took effect. The state anti-fraud unit will be run by the Attorney General’s office, a plan that will hopefully lend itself to more prosecutions. Funding will be provided via assessments on those insurance companies who do business in the state. Initially, $8 million is earmarked to funnel into local law enforcement agencies, allowing them to run sting operations and hire prosecutors
and investigators. Another $4 million will go towards auto theft prevention and deterrents.
TENNESSEE
A law allowing the Tennessee Insurance Department to investigate agents and companies has led to the creation of a fraud unit within the state. Legislation to allow the new unit to investigate questionable applications and suspected fraudulent claims is currently under development.
UTAH
Based on estimates of over $350 million lost to insurance fraud each year, Utah has formed an Insurance Fraud Division charged with the responsibility of investigating and prosecuting insurance fraud matters. The “fraud Hot Line” number is 1-800-440-7021.
David Lattin, a 28-year veteran of the FBI, has been named as Director.
WASHINGTON DC
The Labor Department has proposed regulations addressing injuries stemming from repetitive movements in the workplace. Under the proposed rules, companies would no longer have to review worker compensation and OSHA records to identify jobs that might cause these types of repetitive motion injuries, such as carpal tunnel syndrome. Although repetitive work injuries were once common only to meat cutters, assembly line clerks and cashiers, the injuries are now commonly seen among secretaries, writers and other computer keyboard operators.
Government statistics state that 60 percent of all occupational illnesses are related to carpal tunnel syndrome and back strain. Businesses pay approximately $100 billion annually in workers’ compensation claims and employee absences.
WASHINGTON
Washington now has a BBS. While primarily a system to provide information to the public, it is also a two-way system in which callers will be able to receive private electronic mail. Available information will include regulatory changes as they are proposed and implemented and bulletins to the industry to clarify new rules or new laws. To access (via modem), call 360-664-0397.
Most of the same information is available through the Internet’s file transfer system. To access: olympus dis.wa.gov.Directory is /pub/ins_comm
WEST VIRGINIA
West Virginia has taken steps to create a fraud unit within its Division of Insurance. Lawmakers are considering a measure which would allow the proposed unit to investigate and refer fraud violations to prosecutors. The bill contains a specific definition of insurance fraud, and grants immunity to those who provide information regarding suspected fraud.
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