New Money-Saving Louisiana Insurance Law in AffectInsurance Fraud — By Trace America on July 25, 2012 at 1:55 PM
Florida has recently been a topic of discussion relating to the new law about personal injury protection (PIP) fraud. They aren’t the only ones however; because Louisiana is now making headlines for their new insurance law.
According to KPLC TV, the cost of insurance may soon be going down thanks to a law that was passed during this 2012 legislative session in Baton Rouge. Louisiana State Senator Dan Morrish said, “I think the insurance fraud issue is huge, and I think the way we are handling it is going to be huge.”
Morrish also noted that although insurance fraud is a definite problem in Louisiana, this new law may put a dent in the amount of criminal fraud cases, and it could also reduce the amount residents pay for coverage.
“A portion of your premium is about fraud,” said Senator Morrish. “So as we begin to prosecute fraud, and begin to look hard at how we’re going to prosecute these criminals and what the payment will be, I think we’ll see less fraud. It should lower your insurance premiums.”
The main point of the law is that the state of Louisiana is now able to access the bank accounts of anyone who is convicted of insurance fraud.
Morrish stated, “We have the ability now to go into their bank accounts and to seize that money that they have gotten in control of through fraudulent insurance practices.”
The problem, Morrish says, is that punishment for insurance fraud in Louisiana is minimal –a fine and maybe a year or two in jail, which is not enough to prevent people from committing the crime.
“Essentially, the people that are going to be paying for us to investigate fraud, to prosecute fraud, insurance fraud in Louisiana, are going to be those who are committing it,” said Senator Morrish.
Senator Morrish says no matter the type of insurance, who your insurance company is, or who the policy holder is, this law will affect you.
This post is authored by Trace America.