What's happening
This bill grants immunity from civil liability for sharing information about banking or insurance violations with the National Insurance Crime Bureau.
Why it matters
Promotes information sharing. By granting civil immunity to those who share suspected banking or insurance violations with the National Insurance Crime Bureau (NICB), the bill encourages more robust reporting and collaboration between financial institutions and anti-fraud organizations.
Protects good-faith whistleblowers. The immunity applies as long as there is no fraud or bad faith involved, giving individuals and entities confidence to report suspicious activity without fear of lawsuits, which could lead to earlier detection of financial crimes.
Clarifies NICB's legal standing. The bill explicitly defines the NICB as a nonprofit dedicated to investigating and enforcing banking and insurance law, ensuring there is no ambiguity about the organization's role and the scope of protected communications.
Supports financial crime enforcement. By making it safer to share information with the NICB, the legislation could enhance efforts to combat organized insurance and banking fraud, potentially reducing costs and risks for consumers and institutions alike.
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Who cares
Headline styles
Protect Whistleblowers Sharing Insurance Data
Plain English, a few words. Used as the page title.
Sponsors
10 Co-sponsors
2 Multi-sponsors
History
- Approval memo.47
- Signed chap.656
- Delivered to governor
- Returned to assembly
- Passed senateVote 61–0
- 3rd reading cal.248
- Substituted for S3505A
- Referred to insurance
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.237
- Reported
Show 4 earlier actions
- Print number 3214a
- Amend and recommit to codes
- Reported referred to codes
- Referred to banks
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.
Protects Insurance Whistleblowers From Lawsuits
Senate Floor Calendar · Sponsor Neil D. Breslin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3214--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
Introduced by M. of A. COOK, WRIGHT, DICKENS, GOTTFRIED, SAYEGH, HYND- MAN, RICHARDSON, GRIFFIN, TAYLOR, WILLIAMS, ARROYO -- Multi-Sponsored by -- M. of A. BUTTENSCHON, SIMON -- read once and referred to the Committee on Banks -- reported and referred to the Committee on Codes -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the financial services law, in relation to immunity from civil liability for certain information relating to insurance or banking violations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 405 of the financial services law is amended to read as follows:
§ 405. Immunity. In the absence of fraud or bad faith, no person subject to the provisions of this chapter, the banking law or the insurance law shall be subject to civil liability, and no civil cause of action of any nature shall arise against such person for any: (a) information relating to suspected violations of the banking law or the insurance law furnished to law enforcement officials, their agents and employees; (b) information relating to suspected violations of the banking law or the insurance law furnished to other persons subject to the provisions of this chapter; [and] (c) information furnished in reports to the financial frauds and consumer protection unit, its agents or employees or any state agency investigating fraud or misconduct relating to financial fraud, its agents or employees; and (d) information furnished to or from the National Insurance Crime Bureau. For the purposes of this section the National Insurance Crime Bureau is a nonprofit dedicated to investigation and enforcement of the banking law or the insurance law. The superintendent or any employee of the financial frauds and consumer protection unit, in the absence of fraud or bad faith, shall not be subject to civil liability and no civil cause of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08049-04-9
A. 3214--A 2
action of any nature shall arise against the superintendent or any such employee by virtue of the publication of any report or bulletin related to the official activities of the financial frauds and consumer protection unit. Nothing herein is intended to abrogate or modify in any way any common law privilege or immunity heretofore enjoyed by any person.
§ 2. This act shall take effect immediately.
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.