What's happening
This bill authorizes investigations and reporting of insurance fraud related to uninsured motorists and misrepresentation of vehicle garage locations in New York.
Why it matters
Empowers state regulators to specifically investigate cases where people drive without insurance or falsely claim a cheaper garage location for their car. , addressing two common forms of insurance fraud that can undermine the fairness and financial health of the insurance system.
Highlights the public safety risks posed by uninsured drivers. , noting that when these drivers cause accidents, victims may not receive compensation for injuries or damages, which can leave individuals and families facing serious financial hardship.
Addresses the issue of misrepresenting garage locations, which can unfairly raise costs for honest policyholders. , since fraudulently declaring a low-risk area for a high-risk vehicle shifts the burden of higher insurance claims onto others, leading to increased premiums for everyone.
Requires self-insured entities, including those offering motor vehicle liability insurance, to report suspected fraud. , strengthening oversight and potentially increasing detection and prevention of fraudulent activities in the insurance market.
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Who cares
Department of Financial Services
The bill would expressly authorize the superintendent to investigate fraud involving uninsured drivers and insured drivers who misrepresent where their vehicles are principally garaged and operated.
Motor vehicle liability self-insurers
The bill would explicitly include them among self-insurers whose reports of suspected fraud the superintendent must accept.
Uninsured drivers and insured drivers who misstate vehicle locations
Their activities would fall within the superintendent’s express investigative authority.
Motor vehicle policyholders
The bill would target location misrepresentations that it identifies as improperly shifting high liability costs onto other insured drivers.
Headline styles
Crack Down on Insurance Fraud
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4347
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. WEPRIN -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance 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 401 of the insurance law is amended by adding a new subsection (d) to read as follows:
(d) The superintendent shall have authority pursuant to this chapter to investigate fraudulent activities with regard to individuals that operate motor vehicles with no insurance coverage, and motor vehicle insureds who misrepresent the principal place where insured motor vehicles are garaged and operated. Operating motor vehicles without proper insurance in violation of article six of the vehicle and traffic law is a significant danger to the public because drivers are unable to compensate individuals for personal injuries, death and property damage they inflict upon others. Furthermore, motor vehicle insureds who misrepresent the principal place where such vehicles are garaged and operated improperly shift their high liability exposure costs to other motor vehicle insureds that do not face such high liability risk and insurance premium costs.
§ 2. Subsection (a) of section 405 of the insurance law, as amended by section 7 of part A of chapter 62 of the laws of 2011, is amended to read as follows:
(a) Any person licensed or registered pursuant to the provisions of this chapter, and any person engaged in the business of insurance or life settlement in this state who is exempted from compliance with the licensing requirements of this chapter, including the state insurance fund of this state, who has reason to believe that an insurance transaction or life settlement act may be fraudulent, or has knowledge that a fraudulent insurance transaction or fraudulent life settlement act is about to take place, or has taken place shall, within thirty days after
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05590-01-9
A. 4347 2
determination by such person that the transaction appears to be fraudulent, send to the superintendent on a form prescribed by the superintendent, the information requested by the form and such additional information relative to the factual circumstances of the transaction and the parties involved as the superintendent may require. The superintendent shall accept reports of suspected fraudulent insurance transactions or fraudulent life settlement acts from any self insurer, including but not limited to self insurers providing health insurance coverage, those providing motor vehicle liability insurance or those defined in section fifty of the workers' compensation law, and shall treat such reports as any other received pursuant to this section.
§ 3. This act shall take effect on the one hundred eightieth day after it shall have become a law.
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.