American Property Casualty Insurance Association
  • Staff Contact: Jeffrey Brewer     
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Contact:

Jeffrey Brewer

Phone:

847-553-3763

Email:

jeffrey.brewer@pciaa.net

 

 

FOR RELEASE ON RECEIPT

September 30, 2014

PCI Supported Anti-Fraud Measure Advances in
New Jersey

Cracks down on drivers who live in one state and insure the vehicle in another state

TRENTON, N.J. - The Property Casualty Insurers Association of America (PCI) is urging the New Jersey Senate to pass legislation (A-2281) unanimously passed by the Assembly that cracks down on motorists who reside in New Jersey but say they live in another state for insurance purposes.

This form of insurance fraud, called “reverse rate evasion,” is a common problem in New Jersey and this and other forms of underwriting fraud siphons away billions of dollars forcing other drivers to pay more for insurance.

“The property and casualty insurance industry works hard to advance anti-fraud measures in New Jersey, which can help control auto insurance costs,” said Micaela Isler, assistant vice president, state government relations for PCI. “This legislation is essential because under current law, the Insurance Fraud Prosecutor is unable to prosecute reverse rate evasion cases. The bill would consider reverse rate evasion a form of insurance fraud that violates the New Jersey Insurance Fraud Prevention Act. We applaud Assemblymen Wayne DeAngelo, Joseph Lagana and Financial Institutions and Insurance, Chair Craig Coughlin for sponsoring the legislation and encourage the Senate to join the Assembly in establishing strong anti-fraud statutes.”

Under A-2281, reverse rate evasion would become a crime of the fourth degree and carry penalties and sanctions including up to 18 months in prison.

PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of more than 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $210 billion in annual premium, 39 percent of the nation's property casualty insurance. Member companies write 47 percent of the U.S. automobile insurance market, 33 percent of the homeowners market, 36 percent of the commercial property and liability market, and 39 percent of the private workers compensation market.

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