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Several bills passed by the legislature were considered by Governor Pete Wilson. Wilson’s veto of one bill, the “Homeowners Bill of Rights,” preserved the insurers’ right to use examinations under oath as an investigative tool. Bills he signed into law will permit cancellation of auto policies in cases of misrepresentation of safety and claims history and will allow anti-fraud assessments to be used to fight auto fraud and theft.
Public access to driver and vehicle registration information is restricted as of October 1, 1994, under Connecticut Public Act 94-206. Requirements for release of information include completion of Form J-23 with an address matching that on file with the DMV, payment of a $15 fee and payment of the record fee. Requests must be submitted in person at the Wethersfield office of the DMV and information will not be released until the registered owner of the vehicle is notified.
Agents, brokers or insurers who use forged insurance ID cards are subject to fines of up to $1,000. In other developments, insurers who have provided information to law enforcement about fire losses can request information concerning the losses within 30 days.
A package of anti-fraud bills under consideration by the state legislature would prohibit claims running and application fraud and would establish civil penalties. Fraud warnings would also be required on applications.
Medical providers who knowingly and willfully file false medical assistance claims will be subject to civil and criminal penalties.
In September, penalties for auto theft and VIN tampering were significantly reduced. In response, a group of interested auto/insurance-related businesses has formed the Texas Coalition Against Auto Theft to help deter the use of stolen auto parts. Goals of the group include legislative changes and development of a system to identify stolen parts.
A task force appointed by the state insurance commissioner and attorney general to evaluate the state’s fraud fighting efforts was expected to complete its work by December, 1994.
Washington, D. C.
Under Section 1033 of the Violent Crime Control and Enforcement Act of 1994, signed by President Bill Clinton on September 13, 1994, it is illegal to obtain funds, premiums, credits or property from an insurance company by means of embezzlement or misappropriation; to provide false financial information to regulators or to impede or corruptly influence the administration of an insurance regulation by either threat or force.
© 1995 John Cooke Fraud Report