Adverse decision inKentucky could embolden crash rings

A Kentucky lower court has thrown a wrench in the campaignto combat the growing scams involving PIP crashes in the Bluegrass State. Thecourt agreed with two claimants in an auto crash. They’re suspected of fraud.Insurers have no right to compel them to attend an examination under oath(EUO), the lower court ruled.

The Coalitionand NICB filed an amicus brief this week asking the Kentucky Supreme Court tooverturn the decision and restore insurer rights to use EUOs.

EUOs are a powerful weapon to get at the truth. Whensummoned, many fraudstersdon’t bother showing up —especially lower-level ring members. They feel the fewdollars they’re making don’t offset the potential of getting caught.

EUOs are a deterrent as well. Knowing there’s a chance youmight have to give details of a claim under oath helps keep people honest.

Take the EUO away, and more fraud rings likely will escapedetection and feel emboldened to commit more fraud.

The Kentucky claimants contend insurers use EUOs to harassand intimidate honest claimants. We’ve found no evidence to support thiscontention. We determined that insurers use EUOs very infrequently, and onlywhen necessary to discover truth about a claim.

In fact, EUOs can be an important tool to validatelegitimate claims.

Sometime later this year, the Kentucky Supreme Court willannounce its decision. Here’s hoping they support uncovering the truth aboutpotentially fraudulent auto claims.