House representatives in Indiana recently voted 95 to one in approval of HR 1403, a bill strengthening the penalties for insurance fraud committed in the state. The state's Senate will now open debate on the legislation.

Beefing up a previously weak law will allow the state to begin seriously combating one of its most neglected crimes, according to the Coalition Against Insurance Fraud. “Indiana has one of nation's softest fraud laws, and rarely even prosecutes insurance scams,” said Howard Goldblatt, the coalition's director of government affairs. “Finally imposing serious penalties will give prosecutors an effective tool to clamp down on swindles in the state.”

The legislation would increase jail terms for larger insurance fraud schemes, imposing sentences of up to eight years in jail. The current law allows only one year, no matter how large and damaging the fraud. Fines also would increase significantly.

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