Post Date January 30, 2013 – A study by the National Insurance Crime Bureau (NICB) shows U.S. States which have personal injury protection (PIP) insurance coverage as part of their no-fault auto insurance policy form have a higher chance of insurance fraud through fake insurance claims.  States with no-fault auto insurance have PIP auto insurance coverage which compensates policyholders for medical expenses for injuries caused by auto accidents. The PIP Auto Insurance coverage will pay regardless whose fault the accident was.

PIP Auto Insurance and fraud goes together like Peanut Butter and Jelly

The study which used  four years of data from 2008 through June 2012. The NICB showed the large number of fake PIP Auto Insurance claims were abviously influenced by “organized group/ring activity”.  When fake PIP Auto Insurance Claims are influenced by an organized group, everyone have their hands out.  Dishonest Lawyers, Doctors, Insurance Agents and medical clinics seem to be part of the group.  Of the top 5 states that have the most numbers of OGA Organized Group Activity Claims, three of them require no-fault PIP coverage. The five states that have the highest numbers of such claims are as follows: Florida (3,600 claims); California (2,700); Michigan (1,100); Texas (1,000); and New York (800). Among those states, New York, Michigan and Florida require their drivers to have PIP auto insurance coverage at different levels. Texas too has PIP auto insurance coverage but policyholders can opt-out from the coverage.  Four out of the five cities identified also by NICB to have the most numbers of OGA claims belong to states that requires PIP auto insurance coverage. The top 5 cities with highest number of OGA claims are as follows: (Los Angeles (760); New York City (600); Miami (600); Detroit (550); and Tampa (550).

Criminals who are taking advantage of the generous no-fault insurance and PIP auto insurance coverage staged accidents, forged and medical and treatment records, and among other things just to defraud the industry. The state of Florida and New York had been making some efforts to combat the fraud. Last year, Florida instituted a couple of changes to their PIP system, while New York City just recently convened prosecutors and councilman to discuss how they can effectively address the problem.

-Mike  

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 29, 2013 – Car Insurance Companies in the state of New Jersey are very concerned over the explosion of fake car insurance claims being filed in the Garden State.  New Jersey prosecutors had a meeting recently to say no to fake car insurance claims.  These fake car insurance claims have flooded the state having  a detrimental effect on New Jersey’s very generous Personal Injury Protection Laws.

Fake car insurance claims perpetrated  by your neighbors while you pay more for your car insurance

New Jersey Officials feel 40% of the claims activity in 2011 were found to be fake car insurance claims. The fake car insurance claims have resulted in higher car insurance rates affecting all drivers in the Garden State. Fake car insurance claims is directly tied to the additional $250 million Dollars in car insurance premiums paid by NJ Automobile owners. It’s sad but true; in some cases vehicle owners paid and will continue to pay more on their auto insurance than they paid to purchase their car.

Out of the $500 Million Dollars in legitimate auto insurance claims in 2011 25% of them were fake car insurance claims.  14% of all legitimate claims have been inflated in order to deliberately steal from the auto insurance companies.  Government Officials in NY called for a hearing to discuss New York’s fake car insurance claims issues. New York officials feel honest vehicle owners/auto insurance buyers are being ripped off.  Those buyers are forced to pay additional premium because of those creeps whom filed fake car insurance claims.  Many of these fake claims filed are to take advantage of Personal Injury Claims Pay outs. Both New Jersey and New York prosecutors want new legislation for the runners or middlemen who brings injured patients to medical clinics after a fake car insurance claim. Clinics are cashing in big  unnecessary expensive treatments.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 28, 2013 – A driver from Ohio who was recently caught on camera driving her car on the sidewalk.  Although under normal circumstances driving on the side would be considered foolish; in this situation the driver was an idiot.  In fact, the Ohio Drivers license was suspended for a particular stupid driving infraction.  In fact, stupid in an understatement. Shena Hardin a 34 years old driver from the State of Ohio was sentenced by a Cleveland Municipal Court Judge for the stupid driving move she perpetrated. On September 11 2012 ,  Hardin was caught on camera using the sidewalk to pass a school bus which was stopped and dropping off  children at their bus stop. On the day in question Hardin was driving her car in Cleveland, Ohio.  As she arrived at the downtown Cleveland intersection, She proceeded to drive her car up onto the sidewalk and passed the school bus. She  was sentenced to one hour of wearing a sign “You must be an idiot to pass a School Bus on the sidewalk. Aside from embarrassing public sentence, Hardin was also penalized to pay $250 for court costs and had her Ohio drivers license suspended for 30 days. Personally, having your Ohio Drivers license suspended for thirty days for such a uncaring act should have their Ohio Drivers License suspended for 5 years.

You can lose your Ohio Drivers License for being an idiot in the Buckeye State

Much to her surprise, satellite TV trucks were present nearby to publicize her sentence, streaming a video with Hardin holding the idiot sign. The said sign states “Only an idiot would drive on the sidewalk to avoid a school bus.” A mother of a 9-year old girl who was onboard the bus which Hardin passed on the sidewalk, Lisa Kelly, commented that Hardin sentence does fit for the act she committed. Kelly said that just what the sign says, “She’s (Hardin) an idiot.” Kelly watched as Hardin served her sentence with her eyes covered by dark glasses.  Though the sentence seems to be humiliating to a person, the parent said that the driver needs it. Kelly described Hardin at every court appearance to be unremorseful and laughed during the proceedings. However, the parent felt sorry for Hardin as she was standing in cold serving her sentence.

-Mike 

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 27, 2012 – Law enforcement all over the United States are dealing with the issue issue of unlicensed insurance agents and websites selling insurance products. Sadly; this is a subject which I have Blogged about time and time again.  Florida is the latest state to come down hard on the unlicensed insurance charlatans. Florida Office of Insurance Regulator (FLOIR) announced they issued cease and desist orders against three unlicensed insurance companies which were reported to have been engaged in an “unauthorized and unlicensed” sale of insurance.  The three unlicensed insurance agents were identified as the Miami, Florida-based Arkidus Home Protection (AHP); Temecula, California-based International Pacific Assurance Associates (IPAA); and the Sarasota, Florida-based Dental Care Alliance (DCA), LLC.  The unlicensed insurance companies are accused of selling insurance coverage and home warranties for household appliances. The companies were never been granted an authority to sell insurance or home warranties within the Sunshine state.  They have been ordered to cease and desist its operation immediately.  In other cases, these companies were selling payment bonds targeting non-federal construction projects. They have never been granted an insurance license or a certificate of authority to legitimately sell insurance in Florida, the company is not also registered in the state to do business.

Unlicensed insurance agents still on the prowl on the internet

The Florida Department of Insurance had done the necessary investigation process and have determined that the said three companies where unlicensed insurance agents and were all illegally selling insurance products and services in Florida. When  buying insurance products in Florida or any other US State, such as auto insurance or homeowners Insurance, consumers are advised to check to see if the insurance company has the necessary license to do business in your state.

These three unlicensed insurance companies are just the tip of the iceberg. The moment you log onto the world-wide-web, the vast majority of websites you can submit your private information to is an Unlicensed Insurance Company.  Most can not provide you a quote.  Most don’t have a local or toll-free phone number.  All they want to do is sell your private personal insurance information to a third party.  That third-party will sell your information to dozens of insurance agents.  These agents will call you morning, noon and night.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 26, 2013 –  Michigan’s Office of Financial and Insurance Regulation (OFIR)  recently informed Michigan vehicle operators  and Michigan Auto Insurance buyers the Michigan Auto Insurance Policy the just purchase is not worth the paper it’s printed on.  The fake Michigan auto insurance policies were sold by an unlicensed seller.  The Michigan Department of Insurance reported the unlicensed person who was not licensed to sell Michigan auto insurance has been selling policies being issued through the Tennessee Christian Motorist Aid.  The Individual identified as selling  the fake Michigan Auto Insurance policies is identified as Mervin  The Money Graber. The Michigan insurance regulation agency then issued a cease and desist order against Graber and the Tennessee Christian Motorist Aid to stop “conducting unlicensed and fraudulent Michigan auto insurance activity.” The said cease and desist order was issued last week on Jan. 15, 2013.

Oh yea, the Michigan Auto Insurance you have – is FAKE

In a press release dated three days after the cease and desist on Jan. 18, 2013, the Michigan Department of Insurance advised those who may have purchased a fake Michigan Auto Insurance Policy.  They were  notified they currently are driving without insurance coverage. They were further encouraged to shop and purchase a new Michigan auto insurance policy from a licensed Michigan Insurance Agent.

Before buying  Michigan auto insurance, drivers must know first if the insurance agent or agency selling insurance maintains the proper license to engage in such practice. Any one whom wants to sell Michigan Auto Insurance must maintain a Property and Casualty Insurance License.  The same license is required in every US States.  There’s a very way to check whether an individual is licensed or an agency or insurance company is licensed to write insurance policies in Michigan.  In Michigan;  visit the Department of Licensing and Regulatory Affairs’ website and take a look on the its list of regulated insurance entities. The same is for the other 49 other states.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 23, 2013 –  The 2013 Ford Edge is appealing to both car buyers and those shopping for new car insurance.   Why? The 2013 Ford Edge enjoys the cheapest auto insurance for those seeking a cross-over vehicle. After instructing my agents to prepare car insurance comparisons of the new Ford Edge with our top insurance carriers, the vehicle is being considered to have the cheapest auto insurance among most new 2013 cross-overs of the same price point.

2013 Ford Edge has the Cheapest Auto Insurance

The list of the vehicles which have the cheapest auto insurance now belongs to crossovers and sports utility vehicles which in the past years were dominated by small cars and minivans.  On top of the cheapest auto insurance list is the Ford Edge SE with an average of $1,128 a year. Coming in 2nd place with the cheapest auto insurance for an SUV is the Jeep’s Grand Cherokee Laredo followed by the Subaru Outback 2.5i Premium, then Kia’s Sportage.  One other Jeep model holds a position for cheapest auto insurance is the Patriot Sport. Completing the list of the top 10 2013 cars with the cheapest auto insurance the Chevrolet Express 1500, Subaru Outback 3.6 R ,  Hyundai Tucson GLS , Ford Explorer, and the Hyundai GL . Meanwhile, the top 10 most expensive vehicles to insure list is being dominated with European-made luxury cars. The German Mercedes-Benz has eight 2013 models dominating the list from top 1 to top 8. The 9th and 10th spot went to Porsche 911 Turbo and Porsche 911 Turbo S, respectively. The sample data used in gathering auto insurance rates to come up with the list is that of 40-year single male who commutes 12 miles to work every day, with particular limits, a $500 deductible on comprehensive and collision coverage, and a clean driving and credit history.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 22, 2012 – Super Storm Sandy is still causing havoc on the car insurance claims community. Regardless  how many wheels your vehicle had, be it a Car, truck, trailer, car insurance claims are being filed. Sandy hit the East Coast hard the last week of October.  Car insurance claims for all types of vehicles are now hitting the 230,000 mark. The current Sandy vehicle damage estimates are based on the car insurance claims tally collated from all car insurance companies.  In the storm’s aftermath, auto insurance company are now reporting they have processed around 230,000 car insurance claims to date.  Further, these insurance companies are expecting their car insurance claims will exceed 250,000.

Car insurance claims too exceed a quarter of million claims

The National Insurance Crime Bureau (NCIB) showed that the state of New York has the most number of damaged vehicles that were affected by the storm. In NY, around 130,000 vehicles of different types had been damaged.  Of course the carriers will continue processing these auto insurance claims. The second highest amount of car insurance claims from Sandy in terms of the numbers of vehicles affected is the State of New Jersey with more than 60,000 car insurance claims already. Other states which has recorded a great amount of damage  and car insurance claims are Virginia, West Virginia, Rhode Island, Pennsylvania, Ohio, Connecticut, Delaware, Maine, District of Columbia, Maryland, New Hampshire, Massachusetts, North Carolina.  These states share 40,000 car insurance claims from Super Storm Sandy.

Where some had very minor damages like scratches or dents, others suffered great amount of loss in which some cases, there are vehicles that have already been totally wrecked. These vehicles incurred damages not just from flooding but as well as from the debris that were flown away as the said superstorm ravaged the East Coast. Some vehicles that were salvaged post-Sandy had been submerged underwater for a couple days, with many of them rendered inoperable.

-Mike

Michael E. Dortch
President &  Senior Agent|
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 21, 2013 – New Jersey Law Makers are pushing a new bill which would prosecute those NJ Auto Insurance Buyers  whom lie on their NJ Auto Insurance Applications.  The #1 reason NJ Auto Insurance buyers do not tell the truth to a NJ Auto Insurance Agent is to lower their Rates.  Reverse rate evasion in buying NJ auto insurance shall be considered as a form of insurance fraud and must carry civil and criminal penalties. The bill which proposed such provision, had just passed the NJ Assembly’s Financial Institutions and Insurance Committee on Monday, Jan. 14.  Accordingly, reverse rate evasion occurs when a person primarily living in New Jersey will fraudulently obtain his or her auto insurance policy from another state though they live in New Jersey or they primarily garage their vehicle on the said state. Currently, persons living in New Jersey who but maintain their auto policy from another state tend to enjoy lower premiums.

Fibbing to lower your NJ auto insurance rate is insurance fraud

Under the proposed NJ auto insurance bill, NJ residents who will declare to an auto insurer that their principal address is in another state when in fact they maintain principal residence in New Jersey will be considered perpetrating  an act of NJ Auto Insurance Fraud. This will also apply to auto insurance policyholders who will declare that their insured vehicles are garaged in another state when in fact it is being primarily kept within the Garden State. The said bill may not completely pass the Financial Institutions and Insurance Committee without seeing some amendments. Legislators amended a portion of the bill to clearly state an exemption to the reverse rate evasion provision. The exemption will only apply to residents who have legitimately obtained their auto insurance policy in another state due to second residence, or in the case wherein such persons are attending an educational institution in that state.

-Mike  

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 17, 2013 –  A law cancelling the requirement for new car dealers to provide a federally issued new car  insurance comparison booklet has now been signed into law by President Barack Obama recently. New car buyers will no longer handed the  New Car Insurance Booklet, titled “Relative Collision Insurance Cost Information”.  The new car insurance comparison being distributed by car dealerships. The booklet contained information on New Car Insurance prices on different makes and car models. The New Car Insurance comparison booklet was used to compare how much premium would it potentially cost for a consumer to insure particular vehicles. The National Highway Traffic Safety Administration (NHTSA) takes charge in updating the booklet every year with new claims data gathered by the Highway Loss Data Institute (HDLI). Bottom line, the book was a waste of money because no one used it.

New Car Insurance Comparison Booklet Goes Bye Bye

The requirement on distributing such booklets has been cancelled as it has already been outdated by technology, and has been considered by many as burdensome to businesses and also a waste of taxpayer’s money as most consumers do not anymore ask or request for a copy of the said booklet. Besides, car sales agents can answer to their prospective buyers if asked about the claims data or the loss history of the vehicle being sold.  According to the National Automobile Dealers Association (NADA), 96 percent of their members that are selling new cars have declared that none of its customers had ever requested to see the said booklet. Auto consumers do have many other means to find out how much will it cost them to get coverage for their vehicle. Bill Underriner, NADA Chairperson said in a statement that the production of the booklet and its distribution had already “been made obsolete by technology”. “For all of the years I’ve been in business, I cannot recall that a customer has ever asked to see the booklet,” Underriner said.

-Mike 

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date January 17, 2013 –  NJ Car Insurance customers state-wide will be seeing changes in the (PIP) Personal Injury Projection rules that govern their NJ Car insurance as the year 2013 begins.  As I published  in an earlier blog post, there have been many changes in car insurance rules through out the United States of America.  The State of New Jersey has recently implemented new set of rules on their PIP (personal injury protection). The new set of rules included new codes and fees which  impact the NJ car insurance policyholders and the NJ Car Insurance Companies.  The New Jersey Department of Insurance  say the new PIP rules will close loopholes on compensation that will increase the cost of coverage t NJ Car Insurance Policies. The new rules in took effect about two weeks ago.

NJ car insurance rules changer on January 4, 2013

The State of Florida are also seeing similar changes. PIP coverage in The Sunshine State have been faced with large numbers of bogus personal injury claims taking advantage on their generous coverage limits. NJ Car Insurance and Florida have resulted to the increased cost of  auto insurance in both states. Lawmakers in both states have put in place reforms to combat bogus claims in hopes of reducing the cost of insurance that affects both the insurers and policyholders.

The change on Florida PIP includes some restrictions on the $10,000 minimum coverage. Of the said amount of coverage, only $2,500 can be exhausted to treat conditions that will be considered “non-emergency”. The full amount of $10,000 can only be used if such conditions will be deemed “emergency”. Also, the new PIP rules have set a 14-day initial treatment deadline on those injured people seeking for PIP-compensated treatments.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206