Nevada Legislation Targets Fraud Rings

May 7, 2001

Nevada’s Senate Commerce and Labor Committee approved two bills designed to discourage insurance fraud rings from setting up shop in the state.

According to the Associated Press, one of the goals of AB 135 is to make it easier for insurance companies to get back money from fraudulent claims. The legislation would also form a fraud control unit with subpoena powers in the attorney general’s office, which would have primary jurisdiction to prosecute fraud cases.

Howard Goldblatt from the Washington, D.C.-based Coalition Against Insurance Fraud informed the committee that he is in favor of the bill due to the fact that insurance-fraud rings are moving to the Silver State from other western areas to ply their trade.

In another show of support for the two sponsors of AB 135 – Assemblymen Joe Dini (D-Yerington) and Richard Perkins (D-Henderson) – Goldblatt endorsed a measure which would form a sliding-scale, going from $50 to $2,000, which insurance companies would use to help pay for insurance fraud investigations. The higher the premium volume of the insurer, the more it would pay. Currently, companies in the state, irregardless of size, pay $500 to combat fraud.

According to Goldblatt, there have been no reports of insurance companies moving out of Nevada due to an increase in fraud cases, but noted companies in other states have had to file for bankruptcy following damage done by insurance-fraud rings.

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