New York Insurance

With New York on track to exceed the New Jersey as the country most dear to the nation-state for the automatic configuration insurance, politicians in Albany are encryption system to find it takes legislation, what could become an explosive topic in elections next year.

Most insurance companies of State, the big increase, they say, they need to cover the cost of extensive fraud committed by fraudsters in major cities, exploiting holes in the insurance sector laws. But part of the basis of these applications, “said the merchant public insurance schemes, Commissioner, is a bad decision by the insurers themselves, Set prices kept artificially low to attract customers.

”We believe that this is a time bomb,’’said Alexander B. Assemblyman Grannis, a Manhattan Democrat and the Assembly committee chairmen insurance. ”If current trends, ie 25 per cent walk a federal state.”

Today, the Assembly speaker, Sheldon Silver, published a Democratic plan, the fight against fraud and requested a two-year freeze on prices. A month ago, the Majority Leader of the Senate, Joseph L. Bruno was a Republican package of bills to increase penalties for insurance fraud. And Dir George E. Pataki, a Republican, is likely to seek new elections next year, working on a number of regulatory changes and legislative measures, the fight against fraud in auto insurance and cut rates, even if his government would not share details this afternoon.

The new legislative campaign against fraud is similar to a New Jersey after his last race for governor, if insurance costs almost automatic re-election compromise load Dir Christie Whitman.

The insurance executives say the heart of the problem, New York is an abuse of no-fault auto insurance, in which the driver of a law on insurance of the company shall pay the first $ 50000 of the medical bill injuries in an accident, whatever, is debt. Providers of medical services have six months to the claims of insurance companies and businesses have 30 days to study and raise objections if they suspected fraud. If the insurer missed 30 days of delay, they must pay the claim.

Fraudeurs, particularly in urban areas, were the use of no-fault system, staging accidents and send people to fake or dishonest medical clinics for the tests and unnecessary treatments, some of whom never performed, insurance and criminal prosecution authorities officials say. This discharge schemers often claims by the insurance company, and the six month period expires, making it difficult for investigators to prove that the claims are fraudulent.

Few doubt that fraud in New York. Reports to the State on insurance fraud has no debt has tripled since 1995, 12372 during the last year.

The cost of each claim was also Surges, Insurance Information Institute, a national trade group. In 2000, New York, the insurer “no-fault payments rose by 32 percent over the previous year, approximately $ 7950 per car in the greater good of the nation and above the average National $ 5400 that fraud, the industry has worked hard to convince legislators, up premiums for consumers. In 1998, the latest year for which figures are available, the average premium car in New York was $ 959 . It was $ 1,138 in New Jersey.

Insurers say the main reason for the summit is the sharp increase in fraud rings operated by organized crime, notably in New York City, where they say it costs $ 1 billion per year. Much of the increase in New Jersey came to the 1998 law makes it more difficult to file fictitious claims, that some law enforcement officials and insurers to the conclusion that no fraud rings moved above the ‘Hudson.

This explosion”tout began in late 1999 and has since exponentially,’’said John D. Reiersen, an executive with the Robert Plan Corporation, an insurance company.

But Mr. Reiersen and other industry leaders say, it was also an increase in the abuse of subtle. For example, unscrupulous doctors, in consultation with lawyers for unnecessary tests for the real victims of Pad bills and exceed the $ 50000 minimum of damage to a costume.