TRENTON — Legislation Assemblyman Bob Andrzejczak sponsored to crackdown on insurance fraud has been signed into law.
The law (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.
The Office of the Insurance Fraud Prosecutor had been unable to prosecute so-called reverse rate evasion cases because state law did not include it as a form of insurance fraud.
Under the law, reverse rate evasion is considered a form of insurance fraud that violates the New Jersey Insurance Fraud Prevention Act. This law makes it a crime of the fourth degree.
The law 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.
“Auto insurance fraud means higher costs for everyone else,” said Andrzejczak (D-Atlantic/Cape May/Cumberland). “That’s why this law is common sense and fiscally responsible.”
