Posted 6/11/2009
By Clarence Mills

Maryland Adopts Stricter Insurance Fraud Laws

Maryland's House of Representatives Economic Matters Committee has passed Maryland's H.B. 160, the Fraudulent Insurance Acts. The legislation alters the circumstances of what determines a fraudulent insurance act for public adjusters.

Under H.B. 160, in Maryland it is a fraudulent insurance act for a person to act, or represent oneself to the public, as an insurance producer or a public adjuster if he or she is not properly licensed to do so.

Further, it is a fraudulent insurance act for an insurance producer to solicit or take an application for insurance representation if the insurer has not obtained an appropriate license.

Lastly, under H.B. 160, it is fraudulent for someone to intentionally fail to report to an insurer the exact amount of consideration charged as a premium for an insurance contract, if different from the policy premium, and to fail to maintain records that show that information.

Obama Withdraws Pick for NHTSA Head

President Barack Obama, who intended to nominate Charles "Chuck" Hurley to be the head of the National Highway Traffic Safety Administration (NHTSA), has withdrawn Hurley's name from consideration.

Hurley, chief executive officer (CEO) of Mothers Against Drunk Driving (MADD), has long been an activist for transportation safety.

However, he has been criticized for his alliance with automakers over fuel efficiency standards, thus angering some environmentalists.

Some environmental groups are pleased with the recent nomination withdrawal and are hopeful that the administration will now look for someone who is committed to both safety and fuel-efficiency programs.

ASA Requests Program Include Repair Option

President Barack Obama and the leadership of the U.S. House of Representatives Committee on Energy and Commerce have proposed a new "Cash for Clunkers" plan that they believe will stimulate domestic car sales.

The proposal will replace older, less-fuel-efficient vehicles with newer, more-fuel-efficient vehicles - with the intent to spur new car sales in the United States, but the plan excludes a repair option.

The proposal states that consumers may receive vouchers worth up to $4,500 to help pay for newer, more-fuel-efficient cars in hopes of selling 1 million cars in one year.

ASA has urged Congress to reconsider a plan that would include a repair option. A fleet modernization program without a repair option could be devastating to independent repairers.

Arbitrarily removing older vehicles from America's highways would take vehicles out of independent repair bays, costing jobs and potentially closing small businesses.

Law Exempts Cars from Safety Inspection

The Missouri State Senate has passed House Bill 683, exempting new cars from safety inspection for the first five years that they're on the road.

State Rep. Ed Schieffer sponsored the bill. Schieffer had previously sponsored Missouri H.B. 58, which exempted safety inspections for the vehicle's first 10 years on the road. Once safety inspection language in H.B. 58 was rejected by the Senate, language for a five-year exemption clause was added to Schieffer's Financial Responsibility Act, H.B. 683.

Missouri's safety inspection program has long been the premier program in the country, setting standards for other states. ASA does not support these new exemptions in the Missouri state safety inspection program.