NCJ Number
91627
Date Published
1982
Length
5 pages
Annotation
During 1982, the Anti-Arson Task Force of the National Association of Insurance Commissioners (NAIC) focused on five subjects: the role of the two-tier application in arson investigation, new initiatives in arson prevention, the effectiveness of tax lien legislation, rights of mortgagees, and the possible use of Property Insurance Loss Register (PILR) information in underwriting.
Abstract
The main goal of the task force was to review the progress in implementation of the model Anti-Arson Application Bill adopted by the NAIC. The task force reviewed and adopted an amendment pertaining to the two-tier application. It found that two States have implemented the model legislation and a third has passed it. Three other States have adopted two-tier applications through other approaches. Antiarson measures examined included punitive damages, valued policy laws, and arson reporting immunity legislation. The subcommittee which reviewed the effectiveness of lien legislation found that nine States have adopted municipal lien legislation. It determined that no uniform way exists to establish a procedure which can be used in creating a lien, because tax legislation varies widely from State to State. The task force's final subcommittee found that few mortgagees commit most arson frauds and that the use of sound underwriting principles can reduce the potential for arson for profit. It also found that the type of information collected by PILR is useful to arson prevention but that confidentiality and immunity laws need to be considered in discussions of whether to use it as an underwriting tool. The dissolution of the Anti-Arson Task Force was recommended, along with continuing cooperation with other bodies concerned with arson prevention. A copy of the NAIC Anti-Arson Application Model Bill is attached.