Northeastern News

1HomePageMap small ne 0816Local news stories affecting the auto body industry in New York, New Jersey, Pennsylvania, Delaware, Connecticut, Maryland, Rhode Island, Massachusetts, New Hampshire, Vermont and Maine

Texting while driving laws in New York may get an upgrade in the coming weeks. Senate Republicans have stated they will push legislation that would allow police to stop and ticket motorists solely for texting while driving.

Using a portable electronic device while at the wheel of a moving vehicle in New York is currently a secondary offense, which means that a person can’t be pulled over for using the device alone. Instead, it must be tacked on to another primary offense.

Legislation sponsored by a dozen Republicans, who currently have majority control of that chamber, would upgrade it to a primary offense.

A group of Senate Democrats have also introduced a similar bill. A companion measure is pending in the Assembly.

Please visit www.nysenate.gov for more information.

The Pennsylvania House Transportation Committee gave its approval on May 3 to House Bill 9, which would impose stricter driving and licensing restrictions for 16- and 17-year-old drivers.

The state currently requires drivers under the age of 18 who are testing for a junior driver's license to have 50 hours of supervised "practical driving experience." The bill would bump up that amount to 65, with at least 10 of those hours being at night and with at least five being in "inclement weather."

The bill would also put passenger restrictions on licensed young motorists. If the bill is ultimately signed into law, these drivers would not be able to have more than one passenger under the age of 18 with them in the car without parental approval.

Passenger restrictions like the one proposed in the bill have been said to help lower crash rates. According to the Insurance Institute for Highway Safety, the fatal-crash risk with three or more passengers "is about 3 times higher than when a beginner drives alone."

See Background in Previous Story HERE

More than 2,500 drivers have been cited since Delaware’s hands-free cell phone law went into effect at the beginning of 2011, according to the Delaware Office of Highway Safety.

Office spokeswoman Alison Kirk says more than 350 people were issued cell phone citations in one day during a statewide crackdown on April 21. She says there have been 30 crashes involving cell phones as a distraction since the ban went into effect.

Cell phone users caught talking on their phones can expect a $50 ticket for their first offense, but after court costs the total can be more than $100. Subsequent cell phone offenses can result in fines between $100 and $200, although there are no points added to an offenders license for a cell phone violation.

Eleven people have been arrested in connection with an insurance fraud scheme allegedly involving University Collision Centers of Philadelphia. A Philadelphia police officer, a personal injury lawyer, seven auto damage appraisers and the owner and the manager of a Philadelphia collision repair shop have been charged in an insurance fraud scheme prosecutors say netted them millions over four years, according to reports made by Joseph A. Slobodzian, of ther Philadelphia Inquirer and

Prosecutors are alleging a forklift was modified by attaching one of three types of car bumpers to the tongues to create a variety of scrapes, dents and tears on automobiles. City prosecutors allege that University Collision workers would then report the damages to insurance companies for inflated payouts.

Philadelphia District Attorney Seth Williams and Deputy Police Commissioner Richard Ross announced the filing of felony charges against 11 people, who allegedly worked together to file numerous fraudulent insurance claims, at a Center City news conference.

The charges are the result of a lengthy undercover probe by the DA's Insurance Fraud Unit (IFU) with assistance from Nationwide Insurance Co., GEICO Insurance Co. and the National Insurance Crime Bureau.

"This is not a victimless crime," Williams said. "All Philadelphia consumers are affected."

Among the 11 charged as a result of the 13-month undercover investigation of University Collision Centers by the DA's Insurance Fraud Unit were:

- Philadelphia police officer Gary Cottrell, 44, a 15-year veteran of the force assigned to the 14th District in Germantown and Chestnut Hill. Cottrell allegedly was a "wreck chaser" who traveled throughout the city in uniform to direct accident victims to University Collision. A spokeswoman for the police noted that Cottrell had been suspended for 30 days with intent to dismiss. Cottrell faces a maximum of 152 years incarceration. Deputy Police Commissioner Richard Ross said corrupt officers are a minority of the 6,000-member department: “It’s very sad that all the other men and women on the force have to deal with this.”

- Michael Wolf, 52, of Phoenixville, Chester County, a lawyer with a Philadelphia practice. Wolf allegedly advised University Collision's owner in the fraud and also filed several phony personal injury claims with them. Wolf is a lawyer who has been licensed in Pennsylvania since 1988, and works at the firm of Kotsopoulos & Wolf P.C. They have offices in King of Prussia and Cherry Hill. He allegedly faces 103 years in prison.

- Edward Hildebrandt, 41, of Philadelphia, owner of University Collision, with operations in Gray's Ferry and Manayunk.

- David Coleman, 41, of Chadds Ford, Chester County, identified as manager of University Collision.

The seven vehicle damage appraisers included four from Philadelphia: Arthur Juliano, Addaie Amankwaaw, Cheryl Stanton, and Steve Wilkinson. The others were from South Jersey: Dave Robertson and John Howell, both of Cherry Hill, and Richard Reilly of Mullica Hill,Vicki Markovitz, an Assistant District Attorney, noted that the damage appraisers were independent and reviewed claims for most major insurance companies.

Mercedes-Benz USA (MBUSA) announced April 27 that for the second consecutive year, it has been ranked one of the "Best Places to Work in New Jersey" according to NJBIZ Magazine, New Jersey's primary business journal covering the state. This award was designed to identify, recognize and honor the best places of employment in New Jersey, benefiting the state's economy, its workforce and businesses. The award program, created in 2005, is produced by NJBIZ and sponsored by Gibbons, P.C. and Novo Nordisk and is in partnership with Garden State Council SHRM, The New Jersey State Chamber, Employers Association of New Jersey and the New Jersey Economic Development Authority.

 

Allstate responded April 26 to the Insurance Information Institute’s (III) announcement that fraud and abuse in New York State’s no-fault auto insurance system remains at crisis levels. III also revealed the estimated ‘fraud tax’ that New Yorkers paid in 2010 was $204 million—an amount exceeding $200 million for the second consecutive year. The New York State Senate Insurance Committee is holding a hearing on April 26 to examine the issue more closely.

Krista Conte, New York spokesperson for Allstate Insurance Company, said in response to the III announcement:

"We agree with the Insurance Information Institute that the scale of fraud and abuse in New York State's no-fault auto insurance system today has reached crisis levels. Not only is no-fault fraud (auto accident fraud) costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk.

"Those who would commit this type of crime are taking advantage of the broken no-fault system and they are organized, calculating and part of a big business. In essence, the perpetrators of this crime are imposing a 'fraud tax' on honest, hard working New Yorkers by gaming the auto insurance system.

"Without the support of lawmakers, incidents of fraud will continue to increase. Responsible citizens are the victims. We urge lawmakers to enact comprehensive, meaningful no-fault insurance reform that puts citizens of New York first."

Immediate reform of New York's fraud-riddled no-fault automobile insurance system is needed to stop criminals from cheating the state's citizens out of hundreds of millions of dollars a year, says the New York Insurance Association, Inc. (NYIA).

In testimony prepared for delivery April 26 at the New York State Senate Insurance Committee regarding no-fault auto insurance fraud, Ellen Melchionni, president of NYIA, identifies how the broken no-fault auto laws are forcing New Yorkers to paying for the fraudulent activities of criminals. Costs are spiraling out of control because bogus medical mills and unscrupulous medical providers, predominantly in the New York City area, are billing for treatments that were never performed, unnecessary or excessive.

"Criminals are committing rampant fraud, imposing a 'fraud tax' on honest, hardworking New Yorkers," Melchionni said. "Meaningful, comprehensive reform of the laws is necessary to fix the broken system that criminals are blatantly exploiting for their personal gain. There is not a silver bullet to solve this problem. Auto accident fraud is a moving target. The state needs to be vigilant in fighting this vast problem and cracking down on criminals who have created a 'big business' of fraud to cash in at the expense of New York residents."

"NYIA supports the substantive reform introduced by Sen. James Seward and Assemblyman Joseph Morelle, S2816A/A6286," Melchionni said. "This bill contains numerous remedies including giving insurance carriers adequate time to investigate fraud, encouraging efficient and fair settlement of disputes and creating tougher penalties for fraud."

"NYIA also supports two bills that would help stop staged auto accidents," Melchionni said. "We believe the majority of staged accidents occur during the first 60 days of a newly issued policy. Sen. Martin Golden and Assemblyman Carl Heastie have introduced S4507/A6346A, which would allow insurers to cancel new policies purchased with phony checks or credit cards—minimizing the opportunity for fraud. Another piece of legislation, S1685 sponsored by Sen. Seward, was passed in the Senate and now needs to be taken up in the Assembly by passage of A6177 sponsored by Assemblyman David Weprin, to create a necessary deterrent for criminals who prey on innocent motorists by staging car crashes."

"If there is not comprehensive reform, we are concerned that the present crisis will become progressively worse, leading to a system that is not only broken, but beyond repair," Melchionni said.

The New York Insurance Association (NYIA®) is a state trade association that has represented the property and casualty insurance industry for more than 125 years. For more information visit www.nyia.org.

SOURCE New York Insurance Association

On March 16, 2011 the Society of Collision Repair Specialists (SCRS) held its Annual Awards Banquet at the Crowne Plaza Meadowlands in Secaucus, New Jersey. As always, the highlight of the event was the presentation of the SCRS Industry Awards, through which the Society recognizes those that demonstrate outstanding service and achievement within the collision repair industry.

“Two Hawaiian words characterize these awards and their recipients,” explained Dale Matsumoto, chairman of the SCRS Awards Committee. “The first, ‘aloha,’ is familiar to us as a greeting and farewell; but it also can be used to mean the giving of one’s self-a lifestyle encompassing a life of giving, sharing, caring and love.”

“The second, ‘kina’ole,” means flawless-as in doing the right thing for the right reason with the right feeling. Most individuals can, and will, do the rights things; but it is the deep feelings in our heart that makes us to things, for the right reason. This year’s winners embody the meaning of both these words.”

Below is a summary of this year’s awards, their recipients, and the achievement being recognized.

The New Jersey Green Automotive Repair Program (NJGARP) announced in September that the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) joined them as a new organizational partner.

The NJGARP program, launched in April 2009, encourages the State’s automotive repair facilities—including dealerships, independent shops and, soon, auto body shops-—to implement environmentally-friendly business practices and become certified as “green” businesses.

“AASP/NJ is very proud to join with the other organizations in NJGARP as a partner in promoting environmentally-sound business practices within the body repair industry,” said Charles Bryant, Executive Director of the AASP/NJ. “The group has done tremendous work in its first year and I know that our members will be committed to helping promote processes that are good for the environment, good for consumers and good for business.”

Citing statistics that show highway fatalities increased in Pennsylvania last year, AAA Mid-Atlantic has urged area lawmakers to support proposals that would strengthen teen driver and seatbelt laws and ban texting, according to reports made by Pennsylvania's Montgomery News.

“There is legislation in Harrisburg that we’ve been urging legislators to support,” Rick Remington, AAA’s Philadelphia manager of public and government affairs, said.

Specifically, AAA Mid-Atlantic urged Southeast Pennsylvania legislators to support House Bill 9, introduced earlier this year by state Rep. Kathy Watson, R-144.

The bill would expand training requirements before a teenager could take a test for his or her license, increasing behind-the-wheel training from the current 50 hours to 65 hours. Ten of those hours would have to be at night and five of those would have to be during inclement weather, according to Watson’s proposal.

House Bill 9 also would limit the number of teen passengers to one in a vehicle operated by the holder of a junior driver’s license, those ages 16-1/2 to 18, with exceptions for family members.