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Auto Insurance Fraud Capitol Reforms
Lawrence, Massachusetts once had a reputation as the auto insurance fraud capital of the state. After a concerted three-year push to halt fraud, however, drivers in the city will be eligible in April for the lowest rates on car insurance available in the state thanks to an agreement brokered in part by the State Insurance Commissioner Julianne Bowler.
Lawrence drivers who insure their cars in the city will see a rate reduction of 20 percent as a reward for their role in lowering insurance fraud to their benefit and to that of drivers in the state as a whole.
"This agreement finally brings a fair return to the people of Lawrence, who have swept fraud out the door and lowered rates for ever driver in the state," said State Senator Susan Tucker (Democrat, Andover). "Insurance companies have seen a reduction in claims of tens of millions of dollars."
"The effort and time put in by Lawrence needed to be rewarded financially," Tucker continued. "This will show other communities there is real money in fighting fraud." Tucker is the author of several state laws that specifically target the problem of auto insurance fraud including the measure that made such fraud a felony in the state.
The three state entities involved in the conclusion of the rate reduction deal for Lawrence residents were the State Rating Bureau, the attorney general, and the Automobile Insurers Bureau of Massachusetts.
The Automobile Insurers Bureau President Daniel Johnston called the rate reduction unprecedented but warranted in light of the community's efforts to get on top of a serious problem with statewide ramifications.
State Attorney General Tom Reilly characterized the deal as good news for consumers saying, "We hope to work with the industry in the future to make sure that towns and cities continue to be rewarded for fighting fraud and doing the right thing."
Source: www.eagletribune.com (added on Oct 4, 2006)
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