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AROUND THE COUNTRY
COLORADO
Willful misrepresentation by an insured can now result in coverage being revoked
DELAWARE
A bill to create a fraud bureau was expected to pass this summer. Opponents were mainly trial lawyers, who insisted that fraud was not a problem in Delaware.
ILLINOIS
Lack of support caused an inspection bill to be withdrawn by its sponsor. Support was weakened by provisions that would have decreased the potential cost savings of the legislation.
IOWA
The fraud bureau bill placing the bureau under the jurisdiction of the insurance department has been signed into law. Funding is still contingent on a federal grant.
KANSAS
The new law making insurance fraud exceeding $500 a felony has received final state senate approval and was scheduled to go into effect in July.
KENTUCKY
Under a new state law, all insurers doing business in Kentucky will be required to set up SIUs by July 15, 1995. Fraud fines collected will support a fraud unit within the insurance department. There are provisions for fraud warnings to be included on applications and for fraud reporting immunity.
MARYLAND
The governor has signed a new law that will increase the penalties for insurance fraud and strengthen Maryland’s fraud unit.
Also in Maryland, a decision was expected on a proposed pre-insurance inspection regulation.
MICHIGAN
A multi-line insurance fraud reporting immunity law, similar to that of California, was passed by the state House of Representatives and sent on to the state Senate.
MINNESOTA
A new law requires all insurers to have anti-fraud plans.
Additionally, fraud warnings must be included on claim forms.
NEBRASKA
A fraud unit within the insurance department will be established on January 1, 1995. The specifics of funding and authority are still under discussion.
NEW JERSEY
Under bills recently considered by the state legislature, renewal forms would include a warning about insurance fraud. An applicant who provided false or misleading information would forfeit any premium paid.
VIRGINIA
A law under consideration by the state legislature would change workers’ compensation fraud from a misdemeanor to a felony.
WEST VIRGINIA
The legislature considered but did not act on a new fraud act earlier this year.
WASHINGTON, D.C.
Training for arson investigators has been signed into law by President Clinton, but funding remains a problem.
Also in Washington D.C., proposed U.S. Postal Service regulations that would prevent SIUs from gaining access to change-of-address information are under review.
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