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Current Arson Issues - A Position Paper

NCJ Number
82704
Date Published
1980
Length
44 pages
Annotation
This report outlines the insurance industry's recommendations regarding several legislative and regulatory issues relating to arson control, such as arson reporting immunity laws, insurance company application procedures, and municipal lien laws.
Abstract
A brief review of the activities and membership of the Insurance Committee for Arson Control is followed by a discussion of arson reporting immunity laws that covers the model statute supported by the committee, the status of current State legislation, and recommendations to establish clear reporting procedures. Features of the model arson penal law endorsed by the insurance industry are detailed, as are applications of the Racketeer Infiltrated Corrupt Organizations (RICO) Act in arson cases. Other issues examined are fraud bureaus and State laws allowing the insurer to examine the insured under oath. Efforts of insurance companies to improve their risk screening procedures through a two-stage application and inspections are surveyed, along with problems in determining property values in setting coverage and settling claims. Other company procedural matters addressed are regulation of unfair claims settlement practices, laws permitting an insurance company to cancel a policy in a shorter period of time when arson is suspected, and the practicality of programs to notify insurers when buildings they insure incur serious code violations. Industry efforts to collect information on arson are outlined, with the recommendation that all property and casualty insurance companies subscribe to the Property Insurance Loss Register. The paper then reports on implementation difficulties found with laws authorizing municipal liens against fire insurance proceeds and industry activities to discourage abandonment in residential areas by developing coverages that encourage policyholders to rebuild their fire-damaged structures. Finally, issues related to automobile arson are reviewed. The appendixes contain the texts of the model laws discussed in the report and a table showing arson reporting immunity laws by State.