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PROPERTY CASUALTY WORKING GROUP
OVER THE LAST TWO YEARS, the NJSIA has been
represented by Board Member Tom Cellilli on the Office of the Insurance Fraud
Prosecutor Mini-Summit Work Group. During 2000, there were three groups of
appointees who met regularly to explore ways to assist all entities engaged in
the detection and prevention of insurance fraud.
In 2001, the automobile and general work group have been merged into a
Property Casualty Working Group and will work toward analyzing factors
impacting the detection and prevention of insurance fraud. A second work group
will work on health insurance fraud detection and prevention enhancements.
In 2000, several of the recommendations made by the mini-summit work groups
were considered in the drafting of the required end of the year report to the
Governor and Legislature. The auto work group addressed Legislative change
recommendations regarding Application/Premium fraud by recommending changes to
the "eligible person" definition, recommending that any individual
who violates the Insurance Fraud Prevention Act an ineligible person. The work
group also recommended changes regarding when a carrier can cancel a policy to
include any violation of the Insurance Fraud Prevention Act. Another
recommendation stated that application completion requirements should be
amended to include providing of specific information for all persons regularly
operating the insured vehicle even though they may not reside in the
applicants household.
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The work group also made recommendations regarding
SIU access to DMV information on a more timely basis for information regarding
driving history, title and registration information. The preferred method of
access would be on-line. Finally, the work group raised specific concerns
about the way DOBI's Division of Anti-Fraud Compliance conducted audits of
insurance companies. Specifically, the work group questioned the need for annual audits
for all carriers and the timeliness in which final reports are provided to the
carrier.
As we continue our initiative in 2001, NJSIA is soliciting input from it's
membership with regard to factors which negatively impact the industry's ability
to effectively address insurance fraud issues in New Jersey. Your input is both
welcome and necessary if we are to continuing making progress in the fight to
detect and eliminate or deter insurance fraud. Should there be issues that
should be addresses by either the judicial, legislative or executive branch of
our State government we'd like to hear about them.
Please forward any recommendations you would like to have the work group
consider to:
NJ SIA
Attn: Tom Cellilli
PO Box 22547
Trenton, NJ 08607-4547
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