New York State Senator James Seward has put forward a bill that is intended to alter state insurance law in a way that would close up holes that allow for insurers to sometimes be legally required to pay for claims that might be fraudulent or have inflated costs.
A recent report from the Insurance Research Council (IRC) indicated that out of the no-fault claims paid to New York City claimants in 2010, approximately 14 percent appeared to elements of cost buildup—which happens when medical providers inflate bills and provide unnecessary treatments—and at least 22 percent had elements of fraud. The IRC looked only at claims filed through personal injury protection, which pays out directly to the claimant for bodily injury damages that he or she incurs in an accident, regardless of fault.
According to Seward’s bill, part of
New York car insurance law that’s to blame is the provision requiring that all claims be paid within 30 days of their filing. If insurers do not meet that deadline, they have to pay, even if the claim appears to be fraudulent. The bill would allow insurers to go over the 30-day mark but be required to pay an interest fee on claims that do take that long to close with payment.
Another part of the bill aims to more effectively implement an existing law that allows for the de-certification of medical providers who have committed insurance fraud. Currently, the law is on the books but has not been put into effect.
To learn more about this and other coverage issues, readers can go to
http://www.onlineautoinsurance.com/new-york/ where they will find informative resource pages and a quote-comparison generator that can be used for free to help track down the best rates for a policy.
