TRENTON – Legislation Assembly Democrat Bob Andrzejczak sponsored to crackdown on insurance fraud was given final legislative approval by the Senate Monday.
The bill (A-2281) targets residents who fraudulently obtain automobile insurance in another state, even though New Jersey is their principal residence or they principally keep the insured vehicle in New Jersey.
“Auto insurance fraud means higher costs for everyone else,” said Andrzejczak (D-Atlantic/Cape May/Cumberland). “That’s why this bill is common sense and fiscally responsible.”
Andrzejczak said the Office of the Insurance Fraud Prosecutor is currently unable to prosecute so-called reverse rate evasion cases because state law does not include it as a form of insurance fraud.
Under the bill, reverse rate evasion would be considered a form of insurance fraud that violates the New Jersey Insurance Fraud Prevention Act. This bill makes it a crime of the fourth degree.
The bill also specifies that reverse rate evasion constitutes a violation of the New Jersey Insurance Fraud Prevention Act, with the various civil penalties and remedies provided for in that act applying to violations.
The bill passed the Senate 38-0. It was approved 72-0-0 by the full Assembly in September.
Avalon – Eighty percent of working-age Americans have jobs, and the average after-tax income is up almost $4,000 since before the pandemic, significantly outpacing inflation.
