Legislation seeks to protect seniors from insurance fraud
Gov. Jon S. Corzine signed legislation this week giving consumers a 10-day right to cancel annuity contracts without penalty and requiring licensed annuity sellers to follow marketing and disclosure guidelines.
Known as the Predatory Annuities Prevention Act, the legislation is based on three national model regulations.
An annuity is a contract between a consumer and an insurance company or other entity. The consumer makes a lump-sum payment or series of payments, and in return, the insurer agrees to make periodic payments beginning immediately or in the future.
The bill prohibits those who sell annuities from falsely representing their expertise on marketing materials or risk loss of license. In addition, annuities salespeople are required to fill out disclosure forms that clearly outline the important facts of the purchase to the buyer, the investment objectives and contract terms. The buyer then has a 10-day right to cancel with no financial penalty.
"With nearly $15 trillion dollars invested by people over the age of 50 in this nation, the senior population is very dependent on their investments yet susceptible to disingenuous investment practices. This important bill, spearheaded by our friends at the AARP and embraced by committed legislators, seeks to protect unsuspecting New Jersey seniors from dangerously risky annuities," the governor wrote in a statement.
In the past few years, some insurance companies have been sued over their marketing of annuities, and consumers have alleged they were misled about the products, tricked into overpaying for annuities that eventually paid them much less than expected.
The governor's office estimates Americans lose about $10 billion each year in fraudulent investments.
"This bill will prevent unscrupulous insurance brokers from using inaccurate puffed-up titles such as 'elder financial expert' to describe themselves when selling annuities to seniors," Department of Banking and Insurance Commissioner Steven M. Goldman said.
Primary sponsors of the legislation include state Sens. John H. Adler,
D-Camden, and Robert W. Singer,
R-Burlington, Monmouth, Ocean, Mercer, and Assemblywoman Nilsa Cruz-Perez, D-Camden, Gloucester.
For consumer tips on all types of annuities, visit the Securities and Exchange Commission at:
www.sec.gov/investor/pubs/
varannty.htm
or the Financial Industry Regulatory Authority at:
www.finra.org/Investors/
ProtectYourself/
InvestorAlerts/index.htm
FINRA, the largest nongovernment regulator for all securities firms in the U.S., was created in July 2007 through the consolidation of the National Association of Securities Dealers and the New York Stock Exchange's member regulation, enforcement and arbitration functions.
Consumer Action will respond to each properly submitted letter about a problem or question, either in this column or by letter or phone. Letters must include copies - not originals - of all relevant documentation and a name, address and phone number at which you can be reached. Send letters to: Consumer Action, The Press, 11 Devins Lane, Pleasantville, NJ 08232.
http://www.pressofatlanticcity.com/
Two men plead gulty to insurance fraud
The two admitted crashing a dealers car in 1998 to collect insurance compensation.
Two men accused of setting up a fake accident on the A7 in Murcia in December 1998 in order to collect 6,200 € insurance money, admitted the charge in the Murcia Provincial Court yesterday.
The admission meant that the case against the men no longer needed to continue.
They admitted that one of them crashed and wrote off a showroom car being test driven on purpose alone, but then claimed that it had been hit laterally by the other driver. The two then filed a ‘friendly’ insurance claim, and received 6,200 € in compensation.
They money now has to be repaid, and each have been fined 720 € and handed down a suspended year prison sentence.
http://www.typicallyspanish.com
Taxi driver charged with arson and insurance fraud in Torrevieja
A 34 year old Ecuadorian man also died in the house fire the man is alleged to have planned with the victim.
A local Spanish taxi driver from Benijófar, with the first name of Miguel and owner of the property which saw a fire on September 16 in which a 34 year old Ecuadorian man died, has been arrested by the police. He is accused of planning the fire with the man who died in order to collect the insurance money. Both men are reported to have money problems.
Sources close to the case are reported to say the man faces charges of setting the fire and of fraud, but it is unclear if he will face any further charge given the death of the Ecuadorian.
Instruction Court 2 in Torrevieja extended his detention on remand yesterday after taking his first statement.
http://www.typicallyspanish.com
Conniving couple?
Molemole municipality’s communications manager Timothy Molopa is out on bail.Council boss, wife accused of fraud after claiming R200000 insurance for ‘hijacked’ car
The wife of Timothy Molopa, Molemole municipality’s communications manager who was arrested for a R200000 car insurance fraud, has also been arrested.
The woman is facing charges of fraud and defeating the ends of justice.
Her arrest on Monday follows an intensive investigation into a “stolen” Jeep Cherokee belonging to the couple.
The car was reported hijacked in Polokwane on September 11, but police investigations established that it had crossed the Beitbridge border post into Zimbabwe two days before the hijacking was reported .
On the day it crossed the border the car allegedly had legal papers, which led police to believe that Molopa might have sold it so he could claim from the insurance company.
Polokwane police spokesman Captain Mohlaka Mashiane confirmed yesterday that Moyahabo Gink Molopa, 32, was arrested for fraud and defeating the ends of justice.
Molopa was granted a R500 bail on Monday and the matter was postponed to November 17 for further investigation.
“Our investigations have revealed that the couple assisted each other in defrauding the insurance company,” Mashiane said yesterday.
He said the woman had signed affidavits that confirmed that the car had been stolen.
“We have discovered that the vehicle’s insurance was registered in the woman’s name, which makes her an accessory to the crime,” he said.
The woman is reported to have taken the insurance because the couple has a joint estate. The woman is a radiologist at a Polokwane hospital.
Police investigations were sparked by a R200000 insurance payout after claims that the couple’s car had been hijacked.
Her husband is out on R1000 bail and his next court appearance is on November 27.
Frank Maponya
http://www.sowetan.co.za
New Oxford man gets probation in insurance fraud case
A New Oxford man accused of committing insurance fraud by trying to claim more than $20,000 in lost wages after he said he broke his hand at Bay City Restaurant was given a year of probation for the charges.
Jason J. Dattoli, 35, of the 200 block of High Street, allegedly admitted to police that he filed the false claim "just to try and get some money," according to court documents.
Police said Dattoli told a Bay City manager that he injured his hand while trying to prevent a door from striking his son on Sept. 21.
The next day, Dattoli returned to the restaurant with his hand wrapped in bandages and claimed he couldn't work for six weeks, according to court documents.
Dattoli later filed a lost-wages claim with Liberty Mutual, Bay City's insurance provider, in the amount of $21,270, but an investigation led officials to discover he had been working during the time he was collecting wages.
Dattoli pleaded guilty to criminal attempt to commit insurance fraud and a plea deal was negotiated Tuesday. He will be on probation for a year and was told to repay all costs.
By KATHARINE HARMON
Evening Sun Reporter
http://www.eveningsun.com/
Woman facing charges for insurance fraud
An 8th Ward woman will face Cambria County Court action on charges she lied about $10,000 worth of items being stolen from her residence in order to collect on her renters insurance.
Anna Dorn, 38, of the 1100 block of Boyd Avenue, waived her right to a preliminary hearing on Thursday before District Judge Leonard Grecek of Roxbury. She has been released on bail.
She was charged by Johnstown police with insurance fraud and other offenses.
Police said Dorn reported that her residence was broken into on Sept. 2 with a laptop computer, three digital cameras, jewelry and other items being stolen.
Police said they found no evidence of a forced entry.
Dorn told officers that the rear door was open when she returned home, but she couldn’t remember if she had locked it before leaving.
Dorn made a claim on Sept. 2 for $10,000 in losses to her insurer, Allstate Insurance Co.
During the investigation, police learned that Dorn had hidden the items in her attic.
http://www.tribune-democrat.com