S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3665
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2017
                                ___________
 
 Introduced by Sens. KLEIN, AVELLA, CARLUCCI, SAVINO, SQUADRON, STAVISKY,
   VALESKY  --  read  twice  and  ordered printed, and when printed to be
   committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, the penal law, and  the  vehicle  and
   traffic  law,  in relation to insurance fraud and combatting the theft
   of motor vehicles

   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 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  VEHI-
 CLES  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 COMPEN-
 SATE  INDIVIDUALS  FOR PERSONAL INJURIES, DEATH AND PROPERTY DAMAGE THEY
 INFLICT UPON OTHERS.  FURTHERMORE, MOTOR VEHICLE INSUREDS WHO  MISREPRE-
 SENT  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  trans-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09087-01-7

 S. 3665                             2
 
 action 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
 determination  by such person that the transaction appears to be fraudu-
 lent, send to the superintendent on a form prescribed by the superinten-
 dent, the information requested by the form and such additional informa-
 tion 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. Section 2133 of the insurance law, as amended by  chapter  77  of
 the laws of 1994, is amended to read as follows:
   §  2133. [Forged] FALSE INSURANCE DOCUMENTS AND FORGED insurance iden-
 tification cards. Any  insurance  company,  insurance  agent,  insurance
 broker  or  other person who or which, personally or by the action of an
 employee or agent, KNOWINGLY possesses, transfers or uses: (A) ANY DOCU-
 MENT WHICH PURPORTS TO EVINCE INSURANCE COVERAGE WHEN SUCH  COVERAGE  IS
 NOT  IN  EFFECT  OR IS IN EFFECT AT LIMITS LESS THAN THOSE STATED IN THE
 DOCUMENT; OR (B) a forged insurance  identification  card  for  a  motor
 vehicle, having knowledge, personally or through such employee or agent,
 of  the  fact  that such insurance identification card, when issued, did
 not actually represent an owner's policy of  liability  insurance  or  a
 financial  security  bond  issued by an insurance company licensed to do
 business in this state covering the motor  vehicle  identified  on  such
 card, shall be liable for payment to the people of this state of a civil
 penalty  in  a sum not exceeding one thousand dollars for the first such
 violation and a sum not exceeding five thousand dollars for each  subse-
 quent  violation.  For  the  purposes  of  this section the term "forged
 insurance identification card" means a written insurance  identification
 card  which  has  been  falsely made, completed or altered, and the term
 "falsely made, completed or altered" shall have the same meaning as  set
 forth in section 170.00 of the penal law.
   § 4. Section 165.06 of the penal law, as amended by chapter 413 of the
 laws of 1982, is amended to read as follows:
 § 165.06 Unauthorized use of a vehicle in the second degree.
   A  person  is  guilty  of  unauthorized use of a vehicle in the second
 degree when:
   He OR SHE commits the crime of unauthorized use of a  vehicle  in  the
 third  degree  as  defined  in subdivision one of section 165.05 of this
 article and has been previously convicted of the crime  of  unauthorized
 use of a vehicle [in the third degree] as defined in [subdivision one of
 section  165.05  or  second degree] SECTIONS 165.05, 165.06, AND 165.08,
 AUTO STRIPPING AS DEFINED IN SECTIONS 165.09, 165.10, AND 165.11,  GRAND
 LARCENY  OF  A  MOTOR  VEHICLE  AS  DEFINED  IN SECTIONS 155.30, 155.35,
 155.40, AND 155.42, CRIMINAL POSSESSION OF STOLEN PROPERTY AS DEFINED IN
 SECTIONS 165.40, 165.45, 165.50, 165.52,   AND  165.54  AND  THE  STOLEN
 PROPERTY  CONSISTED OF A MOTOR VEHICLE, OR ILLEGAL POSSESSION OF A VEHI-
 CLE IDENTIFICATION NUMBER  AS  DEFINED  IN  SECTION  170.70  within  the
 preceding ten years.
   Unauthorized  use of a vehicle in the second degree is a class E felo-
 ny.

 S. 3665                             3
 
   § 5.  Subdivision 5 of section 170.10 of the penal law is amended  and
 a new subdivision 6 is added to read as follows:
   5. A prescription of a duly licensed physician or other person author-
 ized  to issue the same for any drug or any instrument or device used in
 the taking or  administering  of  drugs  for  which  a  prescription  is
 required by law[.]; OR
   6.  A CERTIFICATE OF INSURANCE OR AN INSURANCE IDENTIFICATION CARD, AS
 DEFINED IN SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
   § 6. Section 170.15 of the penal law is amended to read as follows:
 § 170.15 Forgery in the first degree.
   A person is guilty of forgery in the first degree when, with intent to
 defraud, deceive or injure another, he OR SHE falsely  makes,  completes
 or alters [a]:
   1. TEN OR MORE WRITTEN INSTRUMENTS; OR
   2. A written instrument which is or purports to be, or which is calcu-
 lated to become or to represent if completed:
   [1.]  (A) Part of an issue of money, stamps, securities or other valu-
 able instruments issued by a government or governmental instrumentality;
 or
   [2.] (B) Part of an issue of stock, bonds or other instruments repres-
 enting interests in or claims against a corporate or other  organization
 or its property.
   Forgery in the first degree is a class C felony.
   §  7.  The penal law is amended by adding a new section 175.50 to read
 as follows:
 § 175.50 OFFERING A FALSE APPLICATION FOR  MOTOR  VEHICLE  INSURANCE  OR
            REGISTRATION.
   A  PERSON  IS GUILTY OF OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE
 INSURANCE OR REGISTRATION WHEN KNOWING THAT ANY DOCUMENT HE OR SHE FILES
 WITH THE DEPARTMENT OF MOTOR VEHICLES OR AN INSURER PROVIDING  LIABILITY
 INSURANCE FOR A MOTOR VEHICLE CONTAINS A FALSE STATEMENT OR FALSE INFOR-
 MATION  WITH REGARD TO WHERE HE OR SHE RESIDES OR WHERE HIS OR HER MOTOR
 VEHICLE IS GARAGED AND OPERATED.
   OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR  REGISTRA-
 TION IS A CLASS E FELONY.
   §  8.  Subdivision 1 of section 176.05 of the penal law, as amended by
 chapter 211 of the laws of 2011, is amended to read as follows:
   1. any written statement as part of, or in support of, an  application
 for  the issuance of, or the rating of a commercial insurance policy, or
 certificate or evidence of self insurance  for  commercial  OR  PERSONAL
 insurance  or  commercial  OR  PERSONAL  self  insurance, or a claim for
 payment or other benefit pursuant to an insurance policy or self  insur-
 ance  program  for commercial or personal insurance that he or she knows
 to:
   (a) contain materially false information concerning any fact  material
 thereto; or
   (b) conceal, for the purpose of misleading, information concerning any
 fact material thereto; or
   § 9. Section 176.15 of the penal law, as amended by chapter 515 of the
 laws of 1986, is amended to read as follows:
 § 176.15 Insurance fraud in the fourth degree.
   A  person  is  guilty  of insurance fraud in the fourth degree when he
 [commits] OR SHE:
   1. COMMITS a fraudulent insurance act and  thereby  wrongfully  takes,
 obtains or withholds, or attempts to wrongfully take, obtain or withhold
 property with a value in excess of one thousand dollars; OR

 S. 3665                             4
 
   2.  OPERATES A MOTOR VEHICLE ON A PUBLIC HIGHWAY, WHEN BEING THE OWNER
 OF SUCH MOTOR VEHICLE, HE OR SHE KNOWS THE MOTOR VEHICLE IS INSURED BY A
 POLICY ISSUED UNDER THE LAWS OF ANOTHER STATE, WHEN  SUCH  PERSON  MAIN-
 TAINS HIS OR HER PRINCIPAL RESIDENCE IN THIS STATE OR SUCH MOTOR VEHICLE
 IS  PRINCIPALLY  GARAGED  IN  THIS  STATE, AND SUCH INSURANCE POLICY WAS
 ISSUED UPON ANY WRITTEN OR ORAL STATEMENT BY SUCH PERSON THAT HE OR  SHE
 PRINCIPALLY  RESIDES  IN  SUCH OTHER STATE OR THAT SUCH MOTOR VEHICLE IS
 PRINCIPALLY GARAGED IN SUCH OTHER STATE.
   Insurance fraud in the fourth degree is a class E felony.
   § 10. The vehicle and traffic law is amended by adding a  new  section
 201-a to read as follows:
   §  201-A.  ACCESS  TO  INFORMATION.  THE  DEPARTMENT  SHALL  ALLOW LAW
 ENFORCEMENT PERSONNEL ACCESS TO ANY INDIVIDUAL'S STREET ADDRESS PROVIDED
 PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF SECTION FOUR  HUNDRED  ONE
 AND SUBDIVISION ONE-A OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
   §  11.  Paragraph b of subdivision 1 of section 401 of the vehicle and
 traffic law, as amended by chapter 222 of the laws of 1996,  is  amended
 to read as follows:
   b.  Every  owner  of a motor vehicle which shall be operated or driven
 upon the public highways  of  this  state  shall,  except  as  otherwise
 expressly  provided, cause to be presented, by mail or otherwise, to the
 office or a branch office of the commissioner, or to any  agent  of  the
 commissioner,  constituted  as  provided in this chapter, an application
 for registration addressed to the commissioner, and on  a  blank  to  be
 prepared  under  the  direction of and furnished by the commissioner for
 that purpose, containing: (a) a brief description of the  motor  vehicle
 to be registered, including the name and factory number of such vehicle,
 and  such  other facts as the commissioner shall require; (b) the weight
 of the vehicle upon which the registration fee is based if  the  fee  is
 based  on  weight;  (c)  the name and residence, including county of the
 owner of such motor vehicle, PROVIDED THAT IF THE APPLICANT USES A  POST
 OFFICE BOX WHEN PROVIDING A RESIDENCE ADDRESS, SUCH APPLICANT SHALL ALSO
 PROVIDE  THE  STREET  ADDRESS  AT  WHICH HE OR SHE RESIDES; (d) provided
 that, if such motor vehicle is used or to be used  as  an  omnibus,  the
 applicant  also  shall  so  certify,  and in the case of an omnibus also
 certify as to the seating capacity, and if the omnibus is to be operated
 wholly within a municipality pursuant to a franchise other than a  fran-
 chise  express  or  implied  in  articles  of incorporation upon certain
 streets designated in such franchise, those facts shall also  be  certi-
 fied,  and  a  certified copy of such franchise furnished to the commis-
 sioner; (e) provided, that, if such motor vehicle is an altered  livery,
 the  applicant  shall  so  furnish a certified copy of the length of the
 center panel of such vehicle, provided, however, that  the  commissioner
 shall  require  such  proof, as he OR SHE may determine is necessary, in
 the application for registration and provided  further,  if  the  center
 panel of such vehicle exceeds one hundred inches, the commissioner shall
 require  proof  that  such  vehicle is in compliance with all applicable
 federal and state motor vehicle safety standards;  and  (f)  such  addi-
 tional  facts  or evidence as the commissioner may require in connection
 with the application for registration. Every owner of  a  trailer  shall
 also  make application for the registration thereof in the manner herein
 provided for an application to  register  a  motor  vehicle,  but  shall
 contain a statement showing the manufacturer's number or other identifi-
 cation satisfactory to the commissioner and no number plate for a trail-
 er  issued  under  the  provisions  of subdivision three of section four
 hundred two of this [chapter] ARTICLE shall be transferred  to  or  used

 S. 3665                             5
 
 upon  any  other  trailer than the one for which number plate is issued.
 The commissioner shall require proof, in the application  for  registra-
 tion,  or  otherwise, as such commissioner may determine, that the motor
 vehicle  for  which  registration is applied for is equipped with lights
 conforming in all respects to the requirements of this chapter,  and  no
 motor  vehicle shall be registered unless it shall appear by such proofs
 that such motor vehicle is equipped with proper lights as aforesaid. The
 said application shall contain or be accompanied by such evidence of the
 ownership of the motor vehicle described in the application  as  may  be
 required by the commissioner or his OR HER agent and which, with respect
 to  new  vehicles, shall include, unless otherwise specifically provided
 by the commissioner, the manufacturer's statement  of  origin.  Applica-
 tions received by an agent of the commissioner shall be forwarded to the
 commissioner  as  he  OR SHE shall direct for filing. No application for
 registration shall be accepted unless the applicant is at least  sixteen
 years  of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH AND
 VERACITY OF THE FACTS STATED THEREIN.
   § 12. Section 502 of the vehicle and traffic law is amended by  adding
 a new subdivision 1-a to read as follows:
   1-A.  PROVISION  OF STREET ADDRESS. IN ADDITION TO THE REQUIREMENTS OF
 SUBDIVISION ONE OF THIS SECTION, EACH APPLICANT, WHEN PROVIDING  HIS  OR
 HER  ADDRESS,  SHALL  PROVIDE  THE  STREET  ADDRESS  AT  WHICH HE OR SHE
 RESIDES. THE APPLICANT SHALL SIGN HIS OR HER  APPLICATION  ATTESTING  TO
 THE TRUTH AND VERACITY OF THE PLACE OF HIS OR HER RESIDENCE.
   §  13.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law; provided however, that sections  four,
 five,  six,  seven,  eight and nine of this act shall take effect on the
 first of November next succeeding the date on which it shall have become
 a law.