![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2017\/10\/staged-car-crash-580x456.jpg\")
<\/p>\nThe industry trades have come out to support the latest effort on Capitol Hill to thwart staged accidents.<\/p>\n
Sen. Ashley Moody on July 22 introduced the Staged Accident Fraud Prevention Act. About a year ago, Representatives Mike Collins and Brandon Gill unveiled a companion bill in the House.<\/p>\n
\u201cEvery day, staged accidents and fraudulent schemes put innocent lives at risk and raise costs for every American. The Staged Accident Fraud Prevention Act will help coordinate law enforcement in combatting these sophisticated crime rings and bring the weight of federal law to stopping them,\u201d said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, in Moody\u2019s press release announcing the measure.<\/p>\n
Related:<\/strong> Viewpoint: Rampant Fraud in Staged Accidents<\/a><\/p>\n The American Property Casualty Insurance Association also commended Moody, and urged Congress to advance the legislation.<\/p>\n \u201cSophisticated \u2018crash-for-cash\u2019 rings intentionally orchestrate traffic collisions to exploit no-fault insurance systems, inflate property damage, and file fraudulent claims,\u201d said Sam Whitfield, APCIA\u2019s senior vice president of federal government relations and political engagement. \u201cThese schemes put innocent motorists and truck drivers at risk while driving up insurance costs for everyone. Strong enforcement tools are essential to deter organized fraud, improve roadway safety, and protect families from bearing the costs of criminal activity.\u201d<\/p>\n The proposed legislation ups penalties and fines for those caught being involved in or orchestrating staged accidents.<\/p>\n \u201cUnfortunately, there are crazed and dangerous fraudsters out there who would rather put people\u2019s lives in danger for a quick payday instead of making an honest living putting in a hard day\u2019s work,\u201d said Moody, of Florida. \u201cAnyone who stages or helps stage an accident with a commercial motor vehicle endangers people\u2019s lives and livelihoods. On top of that, these stunts run up insurance premiums for everyone. Unacceptable. This legislation sends a clear message: if you do this, you will be prosecuted.\u201d<\/p>\n Some states have attempted to rein in stage-accident fraud with legislation. Within a reform bill out of Georgia<\/a>, people involved in making claims for staged accidents would face fines of up to $100,000. New York\u2019s budget bill<\/a> included auto reforms, including new language allowing prosecutors to seek criminal penalties against any individual responsible for organizing a staged accident, not just the particular individual behind the wheel.<\/p>\n The Independent Insurance Agents & Brokers of America said the federal bill would \u201ccrack down on staged accidents that endanger motorists, disrupt supply chains and fuel lawsuit abuse.<\/p>\n \u201cThis commonsense measure will help deter insurance fraud, reduce unnecessary litigation costs and ease the pressure of rising insurance premiums on responsible commercial operators and consumers nationwide,\u201d said Big \u2018I\u2019 senior vice president of federal government affairs, Nathan Riedel.<\/p>\n Topics<\/span> Politics<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n