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American Honda will, from time to time, place collision industry magazine articles at this site addressing news, issues, and trends that could be of interest to consumers.


These articles are offered as informational only, reprinted as found in various collision industry magazines, and do not necessarily represent the position or opinion of American Honda.


Monday, February 25, 2013

Maryland Bills Would Make Deductible Rebates Insurance Fraud

The Maryland legislature is considering two bills that would expand the definition of insurance fraud to include rebating deductibles to consumers.

House Bill 763 and its companion Senate Bill 736 define rebating deductibles, either directly or indirectly as insurance fraud.

The House version was heard in the Economic Matters committee earlier this month while the Senate bill is expected next week in the Senate Finance Committee.

The bills state, "It is a fraudulent insurance act for a person to pay or otherwise compensate, directly or indirectly, or offer or promise to pay or compensate, an insured for all or part of an insurance deductible provided under the policy as an inducement to enter into a contract to furnish goods or services."

The House version of the bill was introduced on February 6 by Delegate Brian J. Feldman (D) while the Senate version was introduced on February 1 by John C. Astle (D).

Copyright 2013 CollisionWeek (www.collisionweek.com) – reprinted by permission from the publisher

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