What's happening
This bill expands fourth degree insurance fraud to include lying about your state of residence or where your vehicle is garaged.
Why it matters
Targets insurance cost manipulation. By criminalizing false claims about state residency or where a car is primarily kept, the bill addresses a common tactic people use to obtain cheaper insurance rates, which can shift costs unfairly onto honest policyholders.
Strengthens fraud enforcement. Expanding the definition of insurance fraud makes it easier for prosecutors to bring charges in cases where someone lies about their residence or vehicle location, closing loopholes that previously made some cases hard to pursue.
Includes protections for legitimate situations. The bill explicitly exempts individuals who have valid reasons (like a second home or attending school in another state) and are truthful with their insurer, aiming to only penalize intentional deception—not people with complex living arrangements.
Potential impact on premiums and enforcement. By deterring residency and garaging fraud, the bill could help stabilize or lower insurance premiums for New Yorkers, but may also increase scrutiny of policy applications and claims, affecting how insurance companies verify customer information.
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Who cares
Headline styles
Toughen Insurance Fraud Rules
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred 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.
Crack Down on Insurance Fraud
In Senate Committee · Rules · Sponsor Martin J. Golden
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2288
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. MORELLE, SKOUFIS, WEPRIN -- read once and referred to the Committee on Codes
AN ACT to amend the penal law, in relation to insurance fraud
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 176.15 of the penal law, as amended by chapter 515 of the laws of 1986, is amended to read as follows: § 176.15 Insurance fraud in the fourth degree.
A person is guilty of insurance fraud in the fourth degree when:
1. he or she commits a fraudulent insurance act and thereby wrongfully takes, obtains or withholds, or attempts to wrongfully take, obtain or withhold property with a value in excess of one thousand dollars; or
2. he or she commits a fraudulent insurance act and the material fact contained or concealed is that such person either (a) maintains a principal residence in the other state when, in fact, that person's principal residence is in this state; or (b) has his or her motor vehicle principally garaged in the other state, when, in fact, that person has his or her motor vehicle principally garaged in this state. This section shall not apply to a person who insures a vehicle in another state, as permitted by and in accordance with the laws of that state, based on a second residence, or attendance at an educational institution, in that other state, where such person also drives and garages a vehicle in that state, if in obtaining the policy the person truthfully discloses to the insurance company or producer the state of the person's principal residence and the state where the vehicle is principally garaged.
Insurance fraud in the fourth degree is a class E felony.
§ 2. This act shall take effect on the first of November next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00929-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.