Alabama Legislature Passes Insurance Fraud Bill; NAMIC Comments

Statement of Liz Reynolds
State Affairs Manager
National Association of Mutual Insurance Companies

RE: Alabama Legislature Passes Insurance Fraud Bill; NAMIC Comments

"We're pleased that the Alabama Legislature has addressed insurance fraud with the passage of HB 323. Until now, Alabama was one of only a handful of states with no insurance fraud statute, so this development is a long time coming.

"The Legislature's recognition of the crime of insurance fraud and addressing its investigation and prosecution will benefit insurance consumers and communities alike. In addition, we are hopeful that legislation to combat 'storm scammers,' HB 405, will pass May 16, the last day of session. Fly-by-night roofing contractors who use high-pressure sales tactics are like a fungus that spreads from state to state in the wake of natural disaster and devastation, creating problems for property owners and legitimate roofing contractors.

"The passage of a reasonable package of proposals is the culmination of more than a year's effort working with NAMIC member companies, consumer advocates, regulators, legislators, and others. The adopted proposals are much more reasonable than some of the concepts that have been promoted in recent years. The Alabama Legislature is to be commended for working with all stakeholders to pass a balanced package of insurance-related bills that will benefit consumers not only on Alabama's coast, but throughout the state."

Contact: Lisa Floreancig
Director of Communications | State & Policy Affairs
317.876.4246 Office