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New law takes aim at accident insurance fraud
BALTIMORE -
Beginning next month, restricted access to vehicle accident reports could help cut down on automobile insurance fraud, officials say. “The Central Records Division gets more than 30,000 requests a year for accident reports,” said Greg Shipley, spokesman for the Maryland state police. “Anyone could go in and say, ‘I'd like a copy of that report for the accident down the street,’ and for $4 they could get a copy of that report.” The law, which will go into effect Oct. 1, requires identification when requesting an accident report within 60 days of the accident. Access also is restricted to individuals involved in the motor-vehicle accident, lawyers for those involved, insurance producers, state's attorneys, victim services programs and members of the media, according to the bill. “It may have something to do with unscrupulous attorneys,” Shipley said. The bill was sponsored by Del. Dereck Davis, D-Prince George’s County, who said staged motor-vehicle accidents are a rising problem across the country. The Automobile Insurance Task Force to Study Rates in Urban Areas examined high auto insurance rates in Prince George’s County and Baltimore City in 2005, and the findings acted as a catalyst for Davis’ action. “Staged motor-vehicle accidents are another way to try and defraud an insurance company and pass those costs along to consumers,” Davis said. Under the new law, organizing, planning or participating in staged car accidents is considered a fraudulent insurance act and is punishable by a $10,000 fine and up to 15 years in prison. Davis said the new law’s restricted access also would deter people who work for personal-injury lawyers from tracking down people involved in accidents and encouraging them to commit insurance fraud. County police departments are looking into changing policies for releasing accident reports once the law goes into effect. “The drivers and involved parties no longer will be able to get access to reports via our Web site,” said Sherry Llewellyn, spokeswoman for the Howard County police. “That’s a service we currently provide, and under the new law we won’t be able to do that.” cpeirce@baltimoreexaminer.com |