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Sponsors
2 Co-sponsors
History
- Referred to codes
- Delivered to assembly
- Passed senateVote 60–0
- Ordered to third reading cal.993
- Committee discharged and committed to rules
- Referred to codes
- Returned to senate
- Died in assembly
- Referred to codes
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1542
Show 4 earlier actions
- Committee discharged and committed to rules
- Print number 4900a
- Amend (t) and recommit to codes
- Referred to codes
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to insurance fraud
In Assembly Committee · Codes · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4900A
Title of bill
An act to amend the penal law, in relation to insurance fraud
Purpose or general idea of bill
More and more reports are occurring of New York residents, especially those living in New York City, registering their vehicles out of the state and also applying for auto insurance policies claiming the vehicle will be principally garaged and driven in the other state when they actually use the vehicle primarily in New York State. As a result, the State and local governments are missing out on millions of dollars in revenue for registration fees, license plate fees, title fees and a vehicle use tax in the case of New York City residents. In addition, it corrupts auto insurance rates because claims are not properly assigned to the correct rating territory. This bill would impose a penalty for the crime of intentional rate evasion, thereby deterring New Yorkers who may consider committing rate evasion from doing so and in the process saving law-abiding New Yorkers from the costs incurred by rate evasion.
Read the full memo (629 words)
Summary of provisions
Section 1. Amends section 176.15 of the Penal Law to provide that insuring a vehicle in a state other than New York when the vehicle is principally used and garaged in New York constitutes insurance fraud in the fourth degree. Provides exceptions for persons who insure a motor vehicle in another state where they have a second residence and for college students.
Section 2. The bill would take effect on the first day of November next succeeding the date on which it becomes a law.
Justification
The New York State Commission of Investigation (SCI) in 2006 published a preliminary report of their investigation into insurance rate evasion through the use of out of New York State license plates. SCI found that in 2005 295,963 parking summonses were issued in New York City to 127,243 Pennsylvania registered vehicles,. As of February 2006, 152,957 of these summonses were still outstanding and these represent unpaid fines due to New York City of $14.3 million. New York City is also missing out on unpaid red light traffic infraction fines due to out of state registrations. In 2005 7,378 notices were sent to owners of vehicles registered in Pennsylvania with 3,143 remaining unpaid as of March 2006. The unpaid fines for these notices add up to $270,350.
Additional evidence of the large number of New Yorkers improperly registering their vehicles out of state is found from the SCI report's recitation of 2004 data with 4,495 accidents involving Pennsylvania-registered vehicles reported to DMV with 1,098 of these accidents (about a quarter) occurring in Brooklyn. Since Brooklyn is not contiguous with Pennsylvania, this strongly suggests that most of the owners of these vehicles were likely New York residents and not Pennsylvania residents.
Furthermore, the New York Department of Financial Services' Financial Frauds & Consumer Protection Unit (FFCPU) 2012 Annual Report showed
that the total amount of reported premium lost in 2012 due to rate evasion by New Yorkers improperly insuring their vehicles out of state was over $3 million. In total numbers, the FFCPU determined that in 2012 3,961 improperly insured vehicles were for out of state insured vehicles.
This measure is modeled on New Jersey's recent rate evasion legislation, which passed both houses of their legislature unanimously and is awaiting the Governor's approval. New York should join its nearby sister state and crack down on this unlawful practice that costs law-abiding New York auto insurance consumers.
Prior legislative history
This is a new bill.
Fiscal implications
For New York City, recovery of $17.2 million. The State could recoup at least $3.8 million.
Effective date
This act shall take effect on the first day of November next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.