Insurers, prosecutors, and lawmakers from both parties argued that loose Minnesota laws encourage insurance scammers as the coalition made a case for 11 legislative measures they say will crack down on costly fraud. The proposals headed to the legislature for consideration in the upcoming session represent a rare area of partisan consensus around the Minnesota no-fault insurance laws. They were honed through a working group that drew in factions from the medical, insurance, and trial lawyer communities.

“It is not a victimless crime. Virtually everyone in the state of Minnesota pays the price for insurance fraud,” said Mark Kulda of the Insurance Federation of Minnesota, who appeared at a news conference to announce the anti-fraud package.

The bills would close perceived loopholes in claims processing, information sharing, investigations, and fraud prosecutions. While the type of fraud varies, some of it involves people using minor car accidents to gain access to prescription medication they later resell. In other cases, unscrupulous contractors prey on storm victims with home-insurance claims for work never performed.

Among the proposed steps:

—Allow the Minnesota commerce commissioner to impose civil penalties for acts of fraud, which is seen as easier than obtaining criminal convictions.
—Limit access to auto accident records that can be used by schemers to solicit victims unknowingly used to perpetrate fraud.
—Give insurance companies liability protection when they exchange claims data with law enforcement that can be analyzed to spot fraud rings.

As states including New York and Florida stiffen their insurance laws, advocates of the new measures say people who engage in fraud are looking for weak spots.

Tim Lynch, government relations director at the industry-backed National Insurance Crime Bureau, said fraud schemes have migrated to Minnesota.

Terry Beswick, an auto body parts retailer, repair man, and new Clinton, IA, business owner, has established himself as an auto body mechanic in Fulton, IA, but, his newest creation, the “It’s a Life Saver” device, is something he calls his best idea yet.

Beswick said, “I spend a lot of time thinking about things that can help people and save them money, and a lot of people have told me this is the best idea I’ve had.”

The “It’s a Life Saver” device is similar in purpose to a car alarm, which is designed to alert the owner of criminal mischief to a vehicle. By taking that concept, Beswick created, essentially, an alarm for the house that is triggered by a small remote button, just like a vehicle alarm. Beswick designed it to be activated in emergency situations, including medical crisis or home intrusion scenarios in which getting to a phone to dial 911 is not easily accessible. When activated, the apparatus sounds an alarm that can be heard within approximately one block of the home, alerting neighbors that trouble is abound.

“People have car alarms, so I started thinking why don’t houses have similar alarms?” Beswick said. “This is different than a security system too because those are hundreds of dollars plus annual fees that you have to pay. This is a one time cost of US$250 plus a US$50 installation fee.”

Not only does Beswick offer the device at the one-time flat rate, he also guarantees that, if it does indeed save a life, a full refund will be rewarded to the victim.

“I figure if this thing saves your life, you’ve already had a pretty rotten day so why not put 250 bucks back in your pocket?” he added.

While the new store on the corner of South Second Street and Fourth Avenue South is designed to promote the alarm, he also obtained the active corner location to help boost activity at his Fulton-based auto body shop.

In addition to selling the device, he also will offer auto body parts for people interested in car restoration, or who just need to replace a part on their car.

“My store is mainly going to be focused on letting people know about my shop and for the do-it-yourself guys who like to fix up cars,” Beswick said.