The New Jersey Assembly passed a measure that would make reverse price evasion an insurance coverage fraud and give for civil and criminal penalties. The bill, A 2281, passed the state’s Assembly on Monday and is pending in the state Senate.
This bill includes “reverse rate evasion” as a form of insurance coverage fraud that violates the “New Jersey Insurance coverage Fraud Prevention Act,” P.L.1983, c.320 (C.17:33A-1 et seq.) and the criminal statutes that define the crime of insurance coverage fraud.
Reverse rate evasion happens when New Jersey residents fraudulently receive automobile insurance coverage in yet another state even even though New Jersey is their principal residence or they principally garage the insured vehicle in New Jersey.
The bill includes reverse rate evasion as a crime of insurance coverage fraud and makes it a crime of the 4th degree. The bill specifies that reverse price evasion constitutes a violation of the New Jersey Insurance Fraud Prevention Act, and that the numerous civil penalties and remedies provided for in that act apply.
The bill’s reverse rate evasion provisions would not apply to a particular person who insures a vehicle in one more state if permitted by and in accordance with the laws of that state, based on a second residence or attendance at an educational institution in that other state, if in getting that insurance policy the person truthfully discloses to the insurer or producer the state of the person’s principal residence and the state exactly where the vehicle is principally garaged.
New Jersey Bill Seeks to Crack Down on Reverse Price Evasion
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