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.
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