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New York Insurance Superintendent Howard Mills is campaigning to toughen up the state’s light insurance fraud penalties, sending a flurry of letters to legislators urging them to break their gridlock and tackle the problem.

Speaking at Orange County Chamber of Commerce in Newburgh, N.Y., yesterday, Mr. Mills railed against puny fraud penalties in the state. “The problem is that we really need to toughen the penalties for insurance fraud in New York State. The penalties for fraud on insurance are a joke,” Mr. Mills said, a spokesman for the New York Insurance Department reported.

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