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Assembly Bill A2551

2017-2018 Legislative Session

Relates to compensation for information concerning fraudulent insurance transaction

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Archive: Last Bill Status - In Assembly Committee

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2017-A2551 (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §405-a, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: A2753
2011-2012: A2854
2013-2014: A3503
2015-2016: A2259
2019-2020: A3072
2021-2022: A1519
2023-2024: A4495
2025-2026: A6878

2017-A2551 (ACTIVE) - Summary

Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.

2017-A2551 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2551
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT to amend the insurance  law,  in  relation  to  compensation  for
   reports of insurance fraud to law enforcement authorities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The insurance law is amended by adding a new section  405-a
 to read as follows:
   §  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, WHO HAS
 REASON TO BELIEVE THAT A FRAUDULENT INSURANCE ACT PROHIBITED PURSUANT TO
 ARTICLE ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW HAS BEEN  COMMITTED  OR
 THAT AN INSURANCE TRANSACTION MAY BE FRAUDULENT, OR HAS KNOWLEDGE THAT A
 FRAUDULENT  INSURANCE  TRANSACTION  IS ABOUT TO TAKE PLACE, OR HAS TAKEN
 PLACE MAY REPORT SUCH ACT OR TRANSACTION AND ANY ADDITIONAL  INFORMATION
 RELATIVE TO THE FACTUAL CIRCUMSTANCES OF THE TRANSACTION AND THE PARTIES
 INVOLVED  TO THE ATTORNEY GENERAL, DISTRICT ATTORNEY OR INSURANCE FRAUDS
 BUREAU.
   (B) IF THE INSURANCE FRAUDS BUREAU RECOMMENDS TO THE ATTORNEY  GENERAL
 OR DISTRICT ATTORNEY TO COMMENCE AN ACTION OR IF THE ATTORNEY GENERAL OR
 DISTRICT ATTORNEY COMMENCES AN ACTION BASED ON INFORMATION PROVIDED BY A
 PERSON  PURSUANT  TO  SUBSECTION  (A)  OF THIS SECTION, THEN SUCH PERSON
 SHALL BE ENTITLED TO RECEIVE AN AWARD OF FORTY PERCENT OF  THE  PROCEEDS
 OF  THE ACTION.   THE ATTORNEY GENERAL OR DISTRICT ATTORNEY SHALL RECOM-
 MEND TO THE COURT WHEN A SETTLEMENT IS ENTERED THE AMOUNT OF SUCH AWARD.
 THE COURT SHALL BASE SUCH AWARD DECISION ON  THE  EXTENT  TO  WHICH  THE
 PERSON SUBSTANTIALLY CONTRIBUTED TO THE PROSECUTION OF THE ACTION.
   §  2.  This  act  shall take effect immediately and shall apply to all
 reports of fraudulent insurance transactions  made  on  and  after  such
 effective date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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