Group Says, 'Ban Unfair Insurance Practices'; Coalition for Fair Insurance Practices Seeks Reform in Insurance Directed Billing and Referral Practices

OWINGS MILLS, Md.--June 4, 2004--The Coalition for Fair Insurance Practices (CFIP) www.fair-insurance.org announced today that it is calling for state legislatures across the country to enact legislation that would remove barriers to free trade in the insurance replacement segment of the auto rental industry.

The State Senate of Rhode Island, and its committee on Commerce, Housing and Municipal Government is currently considering this type of legislation. Bill 8239, which has passed the House of Delegates, proposes an amendment to the Rhode Island Unfair Claims Settlement Act that would include practices that restrict consumer choice when procuring a replacement vehicle from an auto rental. The proposed legislation would give consumers in Rhode Island the right to control which auto rental company they rent their replacement vehicle from when an insurance company provides an auto rental benefit.

Violation of the Unfair Claims Practices Act can result in fines for the insurer of $10,000 per violation, as well as suspension and revocation of the insurer's license.

"We are very encouraged by the progress this legislation has made in Rhode Island, and having Rhode Island lead the way on what we will be a national push for legislation like this has several important advantages," said CFIP co-founder Ken Blum. "Rather than starting from scratch, we're able to amend an existing law that has worked well to protect consumers from unfair claims practices. If Bill 8239 is passed, the next step will be to begin work on passing similar legislation in other states. In order to do that, we must reach out to consumers and businesses impacted by these unfair claims practices and urge them to support legislation in their state. That makes education the number two priority for us, behind getting the law passed."

The CFIP Web site at http://www.fair-insurance.org is an important part of the organization's education campaign. It offers information about unfair claims practices, the proposed legislation, a FAQ (Frequently Asked Questions) page, a sign-up page where visitors can join CFIP to receive a newsletter on related issues, or register their support for the proposed legislation by signing an online petition. Electronic signatures will be sorted and delivered to the appropriate Senators and Representatives in their respective states.

For more information on CFIP, visit www.fair-insurance.org - or contact Jason Manelli at 800-421-7253, ext. 144 - or send email to jmanelli@fair-insurance.org