CTNY Insurance Only

Report Finds That “Staged” Accidents, Meant to Bilk Insurance Companies, Are on the Rise

2010-05-11T17:03:00.000-04:00

As the US economy has gradually deteriorated, the number of fraudulent auto accidents, aimed at bilking insurance companies, has sharply increased, according to a report from the National Insurance Crime Bureau.

According to the bureau, these “staged” automobile accidents often involve criminal gangs that draw unsuspecting innocent, insured motorists into a collision. Suspected fake accident claims are said to have increased 46 percent from 2007 through 2009. Although accident claims have risen, the overall rate of bodily injury and personal injury protection claims has fallen.

The states that produced the most alleged “staged” accidents over the two-year reporting period were Florida, 3,006 and New York. The worse cities for suspected staged accidents were New York City, Tampa, Miami, Orlando and Houston.

No-Fault Auto Insurance Was Focus Insurance Fraud Summit

2010-05-09T11:49:00.000-04:00

At a recent day-long conference on insurance fraud in New York, New York State Insurance Department Superintendent James Wrynn emphasized the importance of legislative reforms to fix what he calls, a broken no-fault system.

The Superintendent outlined his department’s approach to tackle the problems with the no-fault system: aggressively investigating no-fault fraud cases with the expectation of prosecution, major revisions to no-fault regulation 68, and legislative reforms.

The event was co-sponsored by the New York Insurance Association (NYIA) and the National Insurance Crime Bureau (NICB). Panel discussions addressed no-fault fraud, rate evasion, Internet policies, premium fraud and the law enforcement response to each.

Insurance Company Won’t Cover Fairfield Resident Who Stabbed Neighbor

2010-04-30T21:29:00.001-04:00

A Superior Court judge has ruled that a Fairfield lawyer, who fatally stabbed his disabled neighbor three years ago because he erroneously believed the man had molested his daughter, won't get help from his insurance company in the lawsuit filed against him by the victim's family.

In a 19-page decision, the judge stated that USAA Casualty Insurance Co. is not responsible for any civil verdict against Jonathon Edington because of his insurance policy's exclusion against intentional or criminal acts.

In August 2007, Edington pleaded guilty to first-degree manslaughter and was sentenced to 20 years in prison, suspended after he serves 12 years, followed by five years probation, for fatally stabbing 59-year-old Barry James on August 28, 2006.

New York Insurance Regulator Outlines Anti-Fraud Legislative Concepts

2010-04-26T10:43:00.000-04:00

The New York State insurance superintendent said, as part of an effort to address no-fault insurance fraud, that he is supporting the enactment of a measure requiring mandatory arbitration for no-fault claims under $5,000.

Superintendent James Wrynn, said there is not a proposed bill on mandatory arbitration yet, but that talks with legislators have been positive.

Superintendent Wrynn said that requiring mandatory arbitration will decrease the number of overall no-fault cases and send a message regarding the direction the state is going in combating fraud.

Aside from the fraud-fighting aspect of sending such cases to arbitration, Superintendent Wrynn said the plan would also free up court resources.

Connecticut Insurance Department Recovers More Than $1M for Connecticut Drivers

2010-04-23T18:54:00.000-04:00

Connecticut Insurance Commissioner Thomas R. Sullivan has announced that the Connecticut Insurance Department's Consumer Affairs Unit (CAU) has recovered $1,046,798.32 on behalf of consumers in the first quarter of 2010. Each quarter, CAU handles an average of 1600 complaints varying in complexity and relating to various product lines. This quarter, the top three complaint areas were accident and health insurance (40 percent), auto insurance (21 percent) and homeowners insurance (nine percent) complaints.

Not all submitted to the department are subject to recovery. This quarter, 203 complaints resulted in recovery dollars to consumers.

Complaints are made in five categories, according to the department: "marketing and sales," "premiums and ratings," "underwriting," "unfair claim practices," and "other."

Each quarter, the CAU analyzes the complaints received and pays particular attention to trends that may affect consumers. These trends are shared with enforcement, licensing, and market conduct units within the department and are used to continuously monitor and regulate the entire industry and protect consumers.

Federal Flood Insurance Program Extended!

2010-04-19T18:05:00.001-04:00

The news that homeowners insurance providers and property owners in both New York and Connecticut had been hoping for was handed down last week when legislation that would enable an extension of the federally funded flood insurance program made it through the Senate after numerous hurdles.

Reuters reports that on Wednesday Democrats were finally able to garner the amount of votes necessary to pass the bill.

Around 1,400 homes in flood-prone areas, including New York and Connecticut have been unable to close due to the disruption of the flood insurance program. The program closed on March 28, making it impossible for new flood insurance to be written for homeowners.

The Northeast has been particularly hard hit by severe rainfall and flooding in the last month and New York, among other states, was declared a federal disaster area. Individual Assistance Programs were made available to affected homeowners, renters, and businesses in the flood areas.

Geico May Not Be Your Best Choice For Affordable Connecticut Car Insurance

2010-04-12T11:04:00.001-04:00

Geico may be known as the auto insurance company with clever television ads featuring a talking gecko and sensitive cavemen, but in Connecticut, the company is known for a laundry list of infractions, according to Connecticut Insurance Commissioner Thomas Sullivan who recently announced that several Geico units had been fined a total of $177,500 for a laundry list of infractions.

Four Geico subsidiaries had been cited for improper rating, claim delays, loss of use, and using unlicensed adjusters among other violations.

While the violations varied by subsidiary, most did not comply with state law requiring that optional coverage for safety glass repair or replacement be offered at all deductible levels. The Connecticut Insurance Department also found Geico using unlicensed insurance adjusters.

Other violations included instances where units did not include in their settlements the amounts attributed to an insured's inability to use his property, which is commonly referred to as "loss of use."

"Connecticut statutes are in place to protect consumers, and violations of these laws are unacceptable." Sullivan said in a statement. "We will continue to scrutinize companies in this industry to ensure they are committed to conducting business within the boundaries of our insurance laws."

To find the best Connecticut car insurance, contact the professionals at CTNY Insurance. They shop around for the best insurance rates, so you don’t have to.

New York is One of the Most Expensive Places to Insure an Automobile

2010-04-10T20:30:00.000-04:00

If you live in North Dakota, you are paying the lowest auto insurances rates in the country.

If you live in New York, you are paying one of the highest.

Although auto insurance rates vary from year to year, a recent survey found that residents of the Great Plains states and those living in the southeast pay the least in auto insurance.

New Jersey is actually the most expensive state to insure a vehicle, followed by Washington DC, New York and Massachusetts.

One of the reasons for such high auto insurance rates on the Eastern seaboard is urbanization, according to experts. Any area with a large and dense population, has heavier vehicular traffic and is statistically more likely to have a larger number of collisions. In addition, large population centers have higher rates of auto-related crimes including car theft and vandalism, all of which contribute to higher car insurance rates.

All hope is not lost, however. The chance of anyone packing their bags and heading West (or South) just to save on car insurance is slim to none, but that doesn't mean that cheap New York car insurance is not available. When you work with the professional insurance experts at CTNY Insurance, you are guaranteed to find the best auto insurance rates in New York and Connecticut.

FEMA Teams Headed to Flood-Struck Areas In Connecticut

2010-04-05T21:40:00.000-04:00

Governor Jodi Rell has announced that damage assessment teams from the Federal Emergency Management Agency (FEMA) will be on the ground in Connecticut beginning this week to examine the aftermath of severe flooding, particularly in southeastern Connecticut, following last week's heavy rainstorms around the state.

The Governor on Thursday urged residents and businesses to quickly report storm-related damage to their local Town or City Hall. Property owners should first contact their homeowners insurance provider to determine whether the damage to their home is covered. Businesses with business liability insurance are urged to do the same. Uninsured damage and costs should be reported to city or town emergency management or civil preparedness directors.

Property owners should take pictures of damage inside and outside homes or businesses prior to clean-up and repair and should also keep a file with receipts and records of bulky waste pickups, tree removal, replacement items and repair costs (especially uninsured costs).

New York Man Accused Of Insurance Fraud

2010-04-02T21:40:00.000-04:00

A Rochester, New York man who filed a fraudulent $1,200 insurance claim after authorities found him standing next to his burning car was arrested this week, according to the New York State Insurance Department, the agency that investigates fraud related to New York insurance.

Timothy McNulty, 45, is accused of filing the claim with his auto insurance company, Hanover Insurance, for the loss of his car in December. McNulty filed the claim after Rochester police and firefighters found him standing near his burned-out 1997 Nissan Altima.

Investigators from the Insurance Department's Fraud Bureau and the Monroe County Sheriff's office said McNulty was found with minor burns to his arms and gave conflicting accounts about what had happened. A gas can was found in the back seat of the car.

McNulty is charged with fourth degree insurance fraud. He could be sentenced to up to three years in prison if he is convicted.

Insurance Fraud Is On The Rise in New York

2010-03-31T08:27:00.000-04:00

Auto insurance fraud in New York increased almost 9 percent between 2008 and 2009, according to a recent state report. The report, released in early March by the New York State Insurance Fraud Bureau, is released annually and tracks fraud figures across all lines of insurance. The most recent report found that no-fault auto insurance fraud had accounted for 54 percent of all fraud reports received by the bureau in 2009.

In all, the bureau received 13,433 suspected fraudulent no-fault claims in 2009, up from 12,339 in 2008.

As a result of such fraudulent claims, auto insurance rates for New York drivers have steadily increased.

In response to the sharp increase in fraudulent no-fault claims, the New York State Insurance Department has stepped up efforts to combat no-fault fraud. One measure includes proposed revisions to Regulation 68, which implements the no-fault statute.

In most cases, no-fault fraud is committed by organized crime groups that operate corrupt medical clinics submitting fraudulent claims for treatment that was either not performed or not necessary.

Unfortunately, innocent New York drivers are footing the bill for this fraud through higher auto insurance premiums.

Insurance Tip #1: Protect Your Business with Liability Insurance

2010-03-26T14:02:00.002-04:00

Your business is the cornerstone of your livelihood. When business is good, you prosper. When business is bad, you lose money.
This is why it is important for New York and Connecticut business owners to protect their company with strong New York liability insurance and Connecticut liability insurance.

Business liability insurance protects your business from potential lawsuits filed by individuals claiming to have been injured on your property, facility, etc. These claims can affect the name and reputation of a business, even when they are unfounded. By purchasing liability insurance your business is protected from dangerous or defective property claims, slip and fall suits, construction injuries and other types of accidents on commercial properties.

As a business owner, your time is valuable and although finding the best business insurance should be your top priority, you probably can’t afford to waste time searching for the best plan.

Thankfully, the business insurance experts at CTNY Insurance Only are here to help. Our qualified insurance professionals will shop around to find you the best rates possible on New York business insurance and Connecticut business insurance, so you don’t have to.

Auto Insurance Company Sends Refunds to Customers Over 2006 Rate Hike

2010-03-24T16:30:00.000-04:00

According to the New York State Insurance Department, Clarendon National Insurance Company has refunded approximately $992,000 to its customers and paid $360,000 in fines after it was determined that they overcharged auto insurance policyholders when it instituted a 30 percent rate hike against 1,227 of its New York automobile insurance customers.

Most of those policyholders were New York City and Long Island insurance customers.

Although the Clarendon has yet to comment on the situation, the fine and the refunds were the result of a department review of the company, conducted after it requested permission to withdraw from the automobile insurance market in New York State.

New York and Connecticut residents who want to save money on car insurance are encouraged to shop various trusted insurance carriers. Unfortunately, most people don’t have the time to shop for the best auto insurance quotes available. That’s why using a third-party company to search for free no-obligation quotes is a safe and easy way to go.