Members of the National Conference of Insurance Legislators (NCOIL) recently adopted an auto insurance fraud model act to combat illegal insurance activity.
As written, the model law contains several functions. It makes it a felony to procure an individual for the purpose of committing insurance fraud and mandates second-degree felony charges and a minimum two-year jail term for staging auto accidents (whether in person or on paper). It also restricts access to accident reports for 60 days, in most cases.
The model also calls for a one-year suspension of the license or registration of anyone convicted of insurance fraud while using a motor vehicle. License and registration reinstatement fees also are increased to twice the normal charges.
NCOIL said that the Coalition Against Insurance Fraud was instrumental in drafting the model act. A model law is one that is approved and circulated to the states, who then choose whether or not to adopt it.
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