The Massachusetts Joint Committee on Criminal Justice has favorably reported out a bill designed to fight insurance fraud by cracking down on “runners” who promote auto insurance fraud.
“The first step in effectively fighting auto insurance fraud is to treat runners like the criminals they are,” said Gerald Zimmerman, assistant general counsel for the National Association of Independent Insurers, which has been active in supporting the bill.
“Runners” steer accident victims to the clinics of crooked health care providers for “treatment,” and collect a fee for each “referral.”
S.B. 170, sponsored by Sen. Cynthia Stone Creem, would reportedly penalize the practice of acting as or hiring runners with imprisonment of not more than two and a half years, or a fine of not more than $5,000, or both.
“The Joint Committee’s recommendation of ‘ought to pass’ for S.B. 170 puts the bill one step closer to enactment,” added Zimmerman. “We urge Massachusetts legislators to ratify this important bill.”
Topics Fraud Massachusetts
Was this article valuable?
Here are more articles you may enjoy.
Georgia Brokers and Agents Alarmed After Court Ruling Expands Liability for Them 
MMA Alleges Broker Patriot Poached 11 Surety Team Members 
USI Insurance Services Claims Ex-Broker Poached Clients for Own New Agency 
Roof Costs Soar Even as Claims Decline: Verisk 
