Washington–A Virginia legislative panel last week rejected a measure to add a specific insurance fraud crime to its books, dismaying law enforcement officials and an insurance trade group that promotes such provisions.

The decision by a committee of Virginia's lower House means the state remains one of four in the nation without a law making insurance fraud a specific crime. The others are Alabama, Vermont and Oregon.

"A small faction decided Virginia doesn't need a fraud law," said Howard Goldblatt, director of government affairs for the Washington-based Coalition Against Insurance Fraud.

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