N.Y. Associations Align On Auto Reform
NU Online News Service, March, 26, 10:58 a.m. EST?Four major New York agent and broker associations have united in a concerted effort to push auto insurance reform in the state.
The Independent Insurance Agents Association of New York, headquartered in Syracuse, N.Y.; the Professional Insurance Agents of New York, Inc., and The Council of Insurance Brokers of Greater New York, both based in Glenmont, N.Y.; and the New York Auto Agents Alliance in Mount Vernon, N.Y., said they have joined forces to promote legislation aimed at eliminating auto insurance fraud. The coalition said, if reforms are not passed, New York could wind up with the highest auto insurance premium rates in the nation.
In a joint statement, the associations said industry reports estimate fraud is costing New Yorkers $2 million a day, or as much as $321 per policy each year.
"As agents and brokers, we are in a unique position to speak for the insurance buying public who ultimately pay the price of fraud," said Patrick C. Moore, IIAANY president, in a statement. "But to vanquish the rampant fraud spreading throughout the state, several issues must now be addressed."
The associations are calling for the implementation of changes in Regulation 68 of the New York State Insurance Law. The rule change would reduce both the time auto accidents can be reported, from 90 days to 30 days, and the amount of time for medical claims to be filed, from 180 days to 45 days.
The rule change is currently being appealed by state trial lawyers and medical providers to a state appeals court.
To further fight fraud, the associations are calling on the legislature to approve legislation that would:
? Make it a felony to organize phony accidents and coordinate the billing of false medical claims by clinics.
? Extend the timeframe for fraud challenges by insurers from its current 30-day period.
? Set medical protocols to eliminate unnecessary or fictitious treatments, tests and procedures.
? Enact a medical certification system that would bar any healthcare provider or clinic engaging in fraud from treating no-fault cases.
? Mandate arbitration for provider claims, which are currently not binding.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.