New York State Insurance Department Frauds Bureau investigations led to 755 arrests in 2008, the bureau said in its annual report for the year released Thursday. That represents a 6.5 percent increase over 2007 and the highest number of arrests stemming from Bureau investigations since 2004 when there were 815 arrests.

“Arrests for crimes like auto give-ups and fraudulent no-fault insurance claims have increased because of the depressed economy, but the greater number of arrests can also be credited to stepped up cooperation with local officials across the state, as well as a sharper focus on major cases,” said Insurance Superintendent Eric Dinallo. Read more…

The Arizona House Banking and Insurance Committee is evaluating a bill that would make changes to the state’s mandatory vehicle insurance requirements.

According to bill text, in November 1997, Arizona began allowing citizens to use the Internet or telephone to renew their vehicle registrations. Additional services have since been added to include ordering special license plates, duplicate driver licenses and identification cards, license address changes, and payment of abandoned vehicles and nonsufficient fund fees. Read more…

Cutting corners on auto insurance, or even dropping it, may seem like a tempting path for a cash-strapped consumer. However, the risks of doing so may be far more costly than an insurance premium. Besides, there are better ways to save on insurance.

There is evidence that there are more uninsured drivers because of the tough economy, but by doing so, people place themselves at risk, both legally and financially. Even underinsured drivers involved in serious accidents expose themselves to significant risk. Read more…

(BankingMyWay) – You’ve got to have auto insurance in order to drive your vehicle legally in the United States. For many people, though, the cost of insurance is a tough pill to swallow. However, comparison shopping and smart planning can help you save hundreds of dollars a year on your auto insurance premium.

Comparison Shop For The Best Deal
It may sound obvious, but comparison shopping for auto insurance is the fastest and most effective way to save money on your policy. Every single insurance provider uses a different formula for calculating auto insurance premiums, so getting quotes from various competitors will help you choose the most affordable rate for your needs. Online resources can also be very helpful, such as BankingMyWay.com’s Insurance Center, which lets you quickly get quotes from providers like Allstate (Stock Quote: ALL) and Nationwide (Stock Quote: NFS). Read more…

The failure of the repeated bailouts of American International Group’s (AIG Quote – Cramer on AIG – Stock Picks) to quickly unwind itself and wean itself from taxpayer aid has fueled critics of the massive government intervention.

Barry Ritholtz, director of research for Fusion IQ thinks that the state-regulated insurer that was profitable and had reserves for the policies it wrote — the good insurer — should have been spun off. The other side that sold high-risk products to hedge fund managers — the bad insurer — should be allowed to go under. Read more…

(Los Angeles Times) – AIG is too interconnected to fail, some experts say. Its ties with other companies, markets and economies are so numerous that consequences of its collapse are unforeseeable.

To understand why federal officials keep pumping astronomical sums of money into companies such as insurance giant American International Group Inc., it might help to take a high-altitude view of the situation.
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AAA Texas has announced the availability of a new Guaranteed Rebuilding Cost (GRC) optional endorsement for qualifying homeowners from its affiliated carrier, the Auto Club Indemnity Company. The GRC optional endorsement is an innovative insurance product that provides Texans with 100% coverage for covered rebuilding costs. Read more…

The top three reasons consumers filed formal complaints against their insurance companies in 2008 were delays, denials of claims and unsatisfactory settlement offers.

According to the National Association of Insurance Commissioners (NAIC), premium/insurance rating and policy cancellation issues completed the top five. Read more…

Nevada Insurance Commissioner Scott J. Kipper has approved a rate change for homeonwers insurance premiums as filed by State Farm Fire and Casualty Co. The rate change will become effective on April 1, 2009, for new business and on May 15, 2009, for renewals.

Depending on the individual characteristics and coverage levels, this statewide average rate change will result in a premium decrease or increase for some of State Farm’s insureds, whill certain insureds’ rates will remain unchanged, the Department of Insurance indicated. The changes to individual premiums translate into an overall statewide average rate change of 0 percent. The change affects premiums for non-tenant homeowners, renters and condiminium unit owners. The maximum dollar premium change for an insured with specific characteristics will not exceed $50, the DOI noted. Read more…

Massachusetts Attorney General Martha Coakley wants a public hearing to review the auto insurance rates of a new company entering the market in Massachusetts.

Occidental Fire and Casualty Insurance Co. of North Carolina is asking to charge Massachusetts drivers rates that are based on the rates companies charge “high risk” drivers and to add additional fees and surcharges. According to Coakley, the insurer did not provide the sufficient supporting data to justify its proposed rates or fees and surcharges. Read more…