PIANY Applauds Proposed PIP No-fault Regulations, Crackdown
On Fraud
GLENMONT, N.Y., May 11 Proposals to address auto insurance
fraud are being hailed by Professional Insurance Agents of New York State Inc.
after the latest initiative was announced by Insurance Superintendent Gregory
Serio. He unveiled a combined package of executive orders, regulatory action
and proposed legislation to fight fraud related to no-fault claims.
"We're pleased the Assembly, Senate and governor have put out
comprehensive, serious proposals," said Lynne Frank, CPCU, PIANY president.
"We need to move toward meaningful auto reform because the problem is reaching
crisis proportions."
PIANY supports measures that accomplish the following:
* Reduce PIP no-fault reporting time frames. PIANY favors legislation
reducing the time allowed by medical practitioners to notify no-fault
carriers of initial treatment. Current law allows for 180 days. PIANY
favors the proposed measure calling for notice of claim to the insurer
within 30 days of the accident and submission of medical bills within 45
days of treatment;
* Crack down on sham medical clinics. Many no-fault scams have been traced
to questionable medical clinics set up under Article 28 of the Public
Health Law. PIANY wants to see these medical mills more strictly
regulated, and an interagency task force established to coordinate the
attack on fraudulent medical practices that collude with "runners" to
stage accidents; and
* Beef up prosecution of fraud. PIANY would like to see stiffer penalties
for runners, as well as more funding for investigating and prosecuting
fraud.
Accident victims with legitimate injuries would not suffer by these
measures, Frank said. "They're aimed at the fraudulent medical practices that
have learned how to beat the system. They flood carriers with bills for
treatments at the last minute, giving insurance companies no time to review
the claims. The bottom line is these practices are costing insurance consumers
more than $1 billion a year, or roughly $250 on their auto policies," she
said.
At a recent Insurance Department seminar on no-fault auto fraud, PIANY
past President Shelly Kozel proposed a fraud deterrent. "PIA would like to
coordinate a cost-effective program, sponsored by insurance companies, to
provide instant cameras to the law enforcement community. Police officers
could keep the cameras in their police vehicles to have on hand to take photos
at accident scenes." Kozel explained the fact that photos have been taken at
the accident scene could deter fraudulent activities.
The idea was well received. PIANY suggested testing the program throughout
the state in areas where fraud is prevalent. Several insurance companies have
already agreed to participate in the program. Interested companies were asked
to contact PIANY at (800) 424-4244.