The Vermont House of Representatives approved and sent a measureto the State Senate yesterday that would make insurance fraud aspecific crime in Vermont.

Sponsored by Rep. Kathleen Keenan, D-St. Albans City, and Rep.Mark Young, R- Orwell, the chair and vice chair of the HouseCommerce Committee, the measure covers a wide range of insurancecrimes. It includes bogus claims plus scams by agents, publicadjusters and insurers.

The measure carries a maximum prison term for violators of up tofive years and fines up to $10,000 and $20,000 for a secondoffense.

Vermont is currently one of four states that lack a specificanti-fraud statute for insurance crime, according to theWashington-based Coalition Against Insurance Fraud.

The measure, H. 150, also includes provisions requiring insurersto place fraud warnings on claim forms and insurance applications.Under its language, insurers would be required to developanti-fraud plans and submit them the insurance department.

Howard Goldblatt, the Coalition's director of governmentaffairs, said if the bill passes, it will encourage more fraudinvestigations and prosecutions in Vermont.

“The state's current laws are so ill-suited for insurance casesthat some swindlers aren't brought to justice. A law will providethe legal roadmap fraud fighters need to pursue cases,” hesaid.

Mr. Goldblatt in a statement said he had seen no overtopposition to the measure, but at this point it is too early todetermine the odds of the bill's securing passage in the Senate.The legislature is due to recess for the summer May 18.

Among the other states that lack an insurance fraud statute, asimilar bill recently died in Virginia, while Alabama is currentlydebating a fraud bill and the Oregon legislature doesn't meet thisyear.

Coalition Against Insurance Fraud said H. 150 is based on amodel it developed.

Rep. Keenan is a former president of the National Conference ofInsurance Legislators.

Mr. Goldblatt said, “Vermont only has moderate problems withinsurance fraud. But a fraud law would give the insurancedepartment, prosecutors and insurers a much better tool to combatswindles when they do arise.”