Arizona Representative, along with Arizona Glass Association and
State Farm Representatives, Speak Out at Hearing About Arizona Fraud
April 14, 2010
Arizona Rep. Nancy McLain, who introduced a bill addressing auto
glass businesses and insurance fraud, spoke at a hearing last week
about the bill, along with representatives from both the Arizona
Glass Association and State Farm Insurance. McLain gave some insight
as to how the bill came about in her testimony, offered during a
Senate Commerce and Economic Development Committee hearing, and
a State Farm representative advised the company was involved in
the introduction of the bill as well.
"This is an attempt to try to get rid of some outright fraud
that's going on in the windshield repair business," said McLain.
"I'm sure many of you have been approached at a car wash or
Jiffy Lube or something like that."
Don Isaacson, a lobbyist representing State Farm, advised the committee
that the company has seen "10,000 fraudulent glass claims"
in recent years.
"I'd just like to thank Rep. McLain for introducing the bill
and setting through hours of negotiation between the insurers and
the glass group to work this out to a point where the glass association
actually supports the bill now," said Isaacson. "
Certainly not all glass companies are fraudulent, but to give you
an idea of the magnitude of what has gone on out there, State Farm
itself has had 10,000 fraudulent glass claims in recent years and
has worked with the Pima County attorney's office, the Mara County
attorney's office, and the attorney general's office, too, to bring
this legislation to you.
He added, "State Farm believes that [this legislation] should
in fact help curb and deter further fraud because of the specific
prohibitions in here and it will also make it easier to prosecute
these violations as well."
Arizona Glass Association lobbyist Barry Aarons also spoke in favor
of the bill, pointing out that Rep. McLain had held four stakeholder
meetings to go over the bill "line by line."
"There were a couple of very important points that we appreciate
working with the insurance industry on," said Aarons. "You
may never hear me say that in public again, but we were very pleased
that they understood that there were several things in here that
needed to have the burden of proof risen a little bit so as not
to put some of our employees into jeopardy who may not be in fact
committing anything wrong, but just may not have been aware of certain
ways of saying certain things that would have gotten them into trouble."
The bill passed the committee, went to Caucus yesterday and soon
will be reviewed by the entire state Senate. (CLICK
HERE for related story.)
HERE for full text of bill.
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