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for February 2001
           

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.

         
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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