Filed Under:Carrier Innovations, Regulation/Legislation

One Year After Sandy, New Jersey Regulator Warns of Insurance Fraud

One year after Superstorm Sandy struck the state, New Jersey Department of Banking and Insurance Commissioner Ken Kobylowski is cautioning consumers to remain vigilant about insurance fraud.

“Each year, insurance fraud costs companies tens of billions of dollars,” said Commissioner Kobylowski. “Ultimately, this costs consumers in the form of higher premiums. Understanding, identifying, and reporting insurance fraud can help reduce insurance premiums for everyone.”

New Jersey regulations define insurance fraud as the knowing misrepresentation of, or failure to disclose, any material fact that impacts the handling of an insurance claim or the underwriting of an insurance risk. Changing facts of a claim or risk to increase a claims payment or lower an insurance premium constitutes insurance fraud and should be reported when observed, Commissioner Kobylowski said.

For example, Commissioner Kobylowski continued, consumers rebuilding and recovering from Superstorm Sandy should be aware that unscrupulous fraudsters continue to prey on victims. He added that New Jerseyans should remain cautious of contractors or adjusters making claims that sound too good to be true. Any homeowner approached by individuals who encourage an opening or reopening of an insurance claim with promises of covering a deductible should be wary, Commissioner Kobylowski concluded.

Featured Video

Most Recent Videos

Video Library ››

Top Story

6 homeowners’ policy endorsements agents and brokers need to know

It's the insurance agent or broker's job to explain a policy to the buyer, including the available endorsements, and they need to know which endorsement best fits the client’s situation.

Top Story

Top large commercial brokers and insurers based on customer satisfaction

The key variables driving overall commercial insurance customer satisfaction are broker expertise and insurer profitablity, according to the J.D. Power 2016 Large Commercial Insurance Study.

More Resources

Comments

eNewsletter Sign Up

Carrier Innovations eNewsletter

Critical news on the latest tech solutions, information security, analytics and data tools and regulatory changes to help decision-makers at insurance carriers keep their business thriving – FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.