What's happening
This bill grants civil immunity for sharing information about suspected banking or insurance law violations with the National Insurance Crime Bureau.
Why it matters
Encourages more information sharing. By granting civil immunity for sharing information with the National Insurance Crime Bureau (NICB), the bill removes a legal barrier that might prevent banks and insurers from reporting suspected violations, potentially leading to more tips and intelligence on financial crimes.
Targets fraud and misconduct. The NICB focuses on investigating insurance and banking fraud. The bill’s protections could help uncover more fraudulent schemes or misconduct by making it safer for insiders to share evidence or suspicions without fear of being sued.
Aligns with existing protections. The bill expands immunity that already exists for sharing information with law enforcement and state fraud units, now including the NICB, which is recognized as a nonprofit dedicated to fighting financial crime. This could create a more coordinated anti-fraud effort across public and private sectors.
Limits on immunity remain. The immunity does not cover actions taken with fraud or bad faith, maintaining a check against malicious or knowingly false reports. This balance aims to protect whistleblowers acting in good faith without encouraging reckless allegations.
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Who cares
Headline styles
Protects Insurance Whistleblowers From Lawsuits
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Substituted by A3214A
- Amended on third reading 3505a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.248
- Referred to insurance
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.
Protect Whistleblowers Sharing Insurance Data
Signed by Governor · Sponsor Vivian Cook
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3505--A Cal. No. 248
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sens. BRESLIN, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
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 action of any nature shall arise against the superintendent or any such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08049-05-9
S. 3505--A 2
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.
Sponsor's memo
Title of bill
An act to amend the financial services law, in relation to immunity from civil liability for certain information relat- ing to insurance or banking violations
Purpose
This bill grants immunity for reports of suspected insurance fraud made by or to the National Insurance Crime Bureau.
Summary of provisions
Section 1 adds (d) to section 405 of the Financial Services Law
Section 2 is the effective date.
Justification
Information sharing is the most important tool in fighting insurance fraud. Providing adequate protections to organizations that compile data on the state and national level from insurance companies and federal, state and local law enforcement will allow for greater exchange of information in New York. This statutory immunity already exists in a majority of states including California, Florida, Pennsylvania and Texas. Increasing the exchange of information is significantly aiding federal, state and local law enforcement fraud and vehicle theft inves- tigations.
Broadening the exchange of information among those fighting fraud will have a positive impact on the New York anti-fraud environment and provide an immediate boost to information sharing for our state.
Legislative history
S.696 of 2018; S.7572 of 2016.
Fiscal implications
None.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.