senate Bill S6318

2013-2014 Legislative Session

Enacts provisions to reduce the incidence of motor vehicle insurance fraud

download bill text pdf

Sponsored By

Archive: Last Bill Status -


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 14, 2014 referred to insurance

S6318 - Details

Law Section:
Insurance Law
Laws Affected:
Amd §§401 & 2133, add §405-a, Ins L; add §231, amd §846-m, Exec L; amd §97-mm, St Fin L; amd §§170.10, 170.15, & 176.15, add §175.50, Pen L; amd §§1310, 1311 & 1349, CPLR; add §201-a, amd §401, V & T L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A9037A, S988, S988A
2009-2010: S7091A

S6318 - Summary

Grants the superintendent of financial services authority to investigate fraudulent activities, such as motor vehicle operators who drive with no insurance coverage, and those who misrepresent their principal place of residence or where their motor vehicle is principally garaged and operated; authorizes the insurance frauds bureau to accept reports of suspected fraudulent insurance actions; requires insurance companies and self-insurers to report incidents of insurance fraud to the department of financial services; provides for compensation to law enforcement agencies for the prosecution of insurance fraud (view more) directs the superintendent of state police to establish an insurance fraud reward program to those who report insurance fraud; directs the division of criminal justice services to collect and analyze information on insurance fraud; includes within the class D felony of forgery in the second degree, the forgery of a certificate of insurance or an insurance identification card; includes within the class C felony of forgery in the first degree, the forgery of 10 or more written instruments; includes within the class E felony of insurance fraud in the fourth degree, the operation of a motor vehicle in this state when the vehicle is insured in another state, but it is actually garaged in this state or the owner principally resides in this state; provides for the civil forfeiture of the proceeds of a fraudulent insurance act; requires applicants for motor vehicle registrations and driver's licenses to provide the department of motor vehicles with the address of their principal place of residence; establishes a temporary task force on motor vehicle insurance fraud.

S6318 - Sponsor Memo

S6318 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6318

                            I N  S E N A T E

                            January 14, 2014
                               ___________

Introduced  by  Sen. O'BRIEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, the executive law, the state  finance
  law,  the  penal law, the civil practice law and rules and the vehicle
  and traffic law, in relation to  insurance  fraud;  to  establish  the
  temporary  task  force on motor vehicle insurance fraud; and providing
  for the repeal of certain provisions upon the expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, 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 BROAD AUTHORITY PURSUANT TO THIS
CHAPTER TO INVESTIGATE FRAUDULENT ACTIVITIES WITH REGARD TO MOTOR  VEHI-
CLE  DRIVERS  THAT  OPERATE  AUTOMOBILES WITH NO INSURANCE COVERAGE, AND
MOTOR VEHICLE  INSUREDS  WHO  MISREPRESENT  THE  PRINCIPAL  PLACE  WHERE
INSURED  MOTOR  VEHICLES ARE GARAGED AND OPERATED. OPERATING MOTOR VEHI-
CLES 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 LIABIL-
ITY RISK AND INSURANCE PREMIUM COSTS.
  S  2.    The insurance law is amended by adding a new section 405-a to
read as follows:
  S 405-A.  COMPENSATION FOR REPORT OF INSURANCE FRAUD TO  LAW  ENFORCE-
MENT  AUTHORITIES.  (A)  ANY  PERSON,  OTHER  THAN  PERSONS DESCRIBED IN
SUBSECTION (A) OF SECTION FOUR HUNDRED FIVE OF THIS  ARTICLE  AND  OTHER
THAN  A PERSON WHO HAS RECEIVED AN AWARD PURSUANT TO SECTION TWO HUNDRED
THIRTY-ONE OF THE EXECUTIVE LAW, WHO HAS REASON TO BELIEVE THAT A  FRAU-
DULENT  INSURANCE  ACT PROHIBITED PURSUANT TO ARTICLE ONE HUNDRED SEVEN-
TY-SIX OF THE PENAL LAW HAS BEEN COMMITTED OR THAT AN  INSURANCE  TRANS-
ACTION  MAY  BE FRAUDULENT, OR HAS KNOWLEDGE THAT A FRAUDULENT INSURANCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

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