The Coalition Against Insurance Fraud, National Insurance Crime Bureau, National Health Care Anti-Fraud Association and the International Association of Special Investigation Units together warned the California governor to keep penalties in place against insurance fraud criminals.
Governor Schwarzenegger has been considering reclassifying some crimes as misdemeanors which would help the state save money. Most insurance crimes are included under this action.
"Taking the power out of the hands of the public prosecutor to charge someone with a felony crime will have a serious impact on public safety. Insurance fraud is a serious crime that demands serious consequences," wrote the four groups in a letter to the governor.
Earlier this year the National Association of Insurance Commissioners issued warnings to consumers about insurance fraud scams. Urging consumers to check into the legitimacy of insurance companies before handing over money, the NAIC said that the extraordinarily cheap insurance quotes could be a sign of foul play.
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Posted: June 26, 2009
