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Sen. Schumer to introduce insurance fraud legislation

(OBSERVER TODAY) - Sen. Chuck Schumer is introducing federal legislation he believes will significantly impact auto insurance fraud crimes and the criminals who perpetrate them.

This legislation, titled Cheaper Car Insurance Act of 2010, would set up new federal penalties for auto insurance fraud.

In a recent conference call from Washington, the senator said the new legislation would set up specific penalties for the criminals who practice the fraud.

He said it is triggered by a new report which reveals auto insurance fraud is on the rise in New York and it is causing increased insurance rates for drivers.

According to the senator, the rise in suspected insurance fraud cases in New York has increased 33 percent since 2006.

This has caused insurance companies to increase auto insurance rates an average of 6.35 percent last year alone, he said.

“The problem has exploded in New York City and insurance experts say that upstate New York is the next target,” the senator said.

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