New Jersey legislators are considering a bill that would make itthe second state to impose criminal penalties for staging an autoaccident to perpetrate insurance fraud.

State Senate bill S2426 would make it a criminal offense foranyone staging an auto accident to collect on an insuranceclaim.

The bill, which was reported out of the Senate Law and PublicSafety and Veteran's Affairs Committee on Tuesday, would imposepenalties ranging from 18 months to 10 years in prison and finesfrom $10,000 to $150,000, or both depending on whether someone isinjured or killed in commission of the crime.

Under the bill, sentencing for this crime, termed "vehicularcollision fraud," could not have sentences run concurrent with anyother convictions. It also addresses patterns of collision fraudwhere someone who commits two or more acts can be charged with thecrime.

The bill's primary sponsor is Sen. Henry P. McNamara, R-Passaicand Bergen.

Richard Stokes, regional manager and counsel for the PropertyCasualty Insurers Association of America in New Jersey, toldNational Underwriter that the intent of the law is unique and notcommon in other states except Florida.

He said this type of legislation is important to help drive downthe cost of insurance. Similar measures can also spread to otherlines of insurance in the future.

"It is critical that New Jersey remain a leader in fightinginsurance fraud," he said.