Reverse Rate Evasion…New Jersey Act A-2281/S-1737 signed into law
Reverse Rate Evasion…New Jersey Act A-2281/S-1737 signed into law
Governor Chris Christie of New Jersey has signed into law Act A-2281/S-1727, which identifies so-called reverse rate evasion as a form of insurance fraud and provides for civil and criminal penalties.The act targets residents who fraudulently obtain auto insurance in another state with lower rates, even though New Jersey is their principal residence or they principally keep the insured vehicle in New Jersey.The bill also specifies reverse rate evasion constitutes a violation of the New Jersey Insurance Fraud Prevention Act, with various civil penalties and remedies provided for in applying to violations. Convicted drivers could receive fines up to $150,000 and up to 10 years in state prison.The New Jersey Office of the Insurance Fraud Prosecutor has previously documented a growing trend of New Jersey residents insuring in Pennsylvania to avoid higher insurance rates.For all clients of KMRD Partners, we make driver safety training and support available to you. In the event of an accident every client has a kit available for each of your vehicles, walking your driver through the process following an accident. If you aren’t already a client, we hope you will give us an opportunity to win your business.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®.
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To identify and correct coverage and service gaps in your business insurance risk profile contact us at contactus@kmrdpartners.com before one minute from normal strikes.
