Commissioner Donelon Announces Auto Theft & Fraud Awareness Radio Campaign and Tax Saving Opportunities

Commissioner of Insurance Jim Donelon Announces Auto Theft & Fraud Awareness Radio Campaign and Tax Saving Opportunities

Released: March 19, 2009

At a press conference in Baton Rouge today, Commissioner of Insurance Jim Donelon unveiled four radio spots aimed at making the public more aware of insurance fraud and vehicle theft, and offered tips on how to stop these costly crimes. Commissioner Donelon says the ads, sponsored by the Louisiana Automobile Theft and Insurance Fraud Prevention Authority (LATIFPA) within the Department of Insurance, will run statewide starting today.

One ad, simply titled Insurance Fraud, reminds listeners that fraud affects everyone. Fraudulent insurance claims cost insurers $80 billion annually, accounting for 10 percent of the property and casualty insurance industry’s losses, which are passed on to consumers through higher premiums. “The average U.S. household pays about $1,000 a year in additional premiums to cover insurance fraud,” Donelon says. He adds that insurance fraud is the second costliest white-collar crime in America after tax evasion. To help reduce insurance fraud, listeners are urged to report suspected fraud to the Department of Insurance.

Another ad, titled This is the Sound, uses sound effects to illustrate a narrative of someone stealing an unlocked sports car. This spot, aimed at teenage drivers, issues the reminder that vehicle theft only takes a few seconds so when leaving your car, remember to close your windows, take your keys, lock your doors and activate your alarm system.

The final two spots, titled Car Theft: Port of New Orleans and Car Theft: Port of Baton Rouge, bring to light the problem of chop shops shipping stolen vehicle parts overseas. Commissioner Donelon says vehicle theft is the number one property crime in America and that if it were a legal business, it would rank in the Fortune 500. These ads also remind listeners that information about vehicle theft and insurance fraud should be reported to the Department of Insurance.

Created by the Louisiana Legislature in 2004, LATIFPA is a public agency whose purpose is to combat motor vehicle theft, including fraud by theft and other criminal acts. LATIFPA is governed by an 11-member Board of Directors representing the Department of Insurance and related governmental entities.

Commissioner Donelon also took the opportunity to discuss three tax saving options for property owners this tax season:

Louisiana Citizens Assessment Tax Credit
Property owners are once again this year entitled to a state tax rebate whether they owe taxes or not, if they were charged the Louisiana Citizens Property Insurance Corporation assessment on their 2008 policy. Almost $21 million, or 1/3 of the money available, went unclaimed in 2007. Consumers are eligible to recoup the amount of their paid assessment for 2007 and 2008 by accessing the proper forms on the Department of Insurance Web site: www.ldi.state.la.us, by clicking on the Louisiana Citizens Insurance Tax Credit link.

Seven Percent State Tax Credit on Primary Residence Insurance Premiums for 2008
A measure passed during the 2007 Regular Session of the Louisiana Legislature creates a refundable credit against individual income tax for seven percent of the premiums paid by individuals on their primary residence on homeowners, condo owners or tenant homeowners insurance. Any Citizens assessment must be subtracted from the total premium paid before the seven percent credit rate.
Federal Hurricane Tax Deduction
Public Law (PL) 110-343 (a federal law) contains a much-needed tax-relief package for hurricane victims, allowing them to claim their hurricane damages on their taxes for 2008. This will compensate for the additional expense many incurred due to named storm deductibles homeowners faced with damages from Hurricanes Gustav and Ike last September.

This tax relief package allows taxpayers to claim damage that exceeds $100 on their federal taxes for 2008. Previously, hurricane casualty losses were limited to 10% of adjusted gross income. Now, qualifying disaster losses are not subject to that limit.

Consumers can refer to IRS Pub 547 for tax year 2008 to get the details on the Federal Hurricane Tax Deduction: http://www.irs.gov/publications/p547/index.html.