Assembly Bill A3690

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3690
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2025
                                ___________
 
 Introduced  by  M.  of  A. WEPRIN, FALL -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, the penal law, and  the  vehicle  and
   traffic law, in relation to authorizing the investigation of insurance
   fraud and fines related to the commission of such crime 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.
                                                            LBD07819-01-5
              

 A. 3690                             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, PRODUCES transfers or uses:  (A)
 ANY  DOCUMENT  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 identi-
 fied on such card, shall be liable for payment to  the  people  of  this
 state  of  a  civil  penalty  in  a sum not exceeding [one] TWO thousand
 dollars for the first such violation and a sum not exceeding five  thou-
 sand  dollars  for  each  subsequent 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] SUCH PERSON 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.
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   § 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]  SUCH  PERSON  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  SUCH  PERSON
 FILES  WITH  THE  DEPARTMENT  OF  MOTOR VEHICLES OR AN INSURER PROVIDING
 LIABILITY INSURANCE FOR A MOTOR VEHICLE CONTAINS A  FALSE  STATEMENT  OR
 FALSE INFORMATION WITH REGARD TO WHERE SUCH PERSON RESIDES OR WHERE SUCH
 PERSON'S 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]  SUCH
 PERSON 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] SUCH PERSON:
   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
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   2. OPERATES A MOTOR VEHICLE ON A PUBLIC HIGHWAY, WHEN BEING THE  OWNER
 OF SUCH MOTOR VEHICLE, SUCH PERSON KNOWS THE MOTOR VEHICLE IS INSURED BY
 A  POLICY ISSUED UNDER THE LAWS OF ANOTHER STATE, WHEN SUCH PERSON MAIN-
 TAINS SUCH PERSON'S 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  SUCH
 PERSON  PRINCIPALLY RESIDES IN SUCH OTHER STATE OR THAT SUCH MOTOR VEHI-
 CLE 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, AS WELL AS ANY DEPART-
 MENT, AGENCY, AUTHORITY OR GOVERNMENT ENTITY, MAINTAINING VEHICLE, RESI-
 DENCE  OR  EZ  PASS  INFORMATION,  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 SUCH APPLICANT 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] SUCH  COMMISSIONER  may  determine  is
 necessary,  in the application for registration and provided further, if
 the center panel of such vehicle exceeds one hundred inches, the commis-
 sioner shall require proof that such vehicle is in compliance  with  all
 applicable  federal  and  state  motor vehicle safety standards; and (f)
 such additional 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
 identification satisfactory to the commissioner and no number plate  for
 A. 3690                             5
 
 a  trailer  issued  under the provisions of subdivision three of section
 four hundred two of this [chapter] ARTICLE shall be  transferred  to  or
 used  upon  any  other  trailer  than  the one for which number plate is
 issued.  The  commissioner  shall  require proof, in the application for
 registration, 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 afore-
 said. The said application shall  contain  or  be  accompanied  by  such
 evidence of the ownership of the motor vehicle described in the applica-
 tion as may be required by the commissioner or [his] SUCH COMMISSIONER'S
 agent  and  which,  with  respect to new vehicles, shall include, unless
 otherwise specifically provided by the commissioner, the  manufacturer's
 statement  of  origin.  Applications received by an agent of the commis-
 sioner shall be forwarded to the commissioner as [he] SUCH  COMMISSIONER
 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 SUCH
 APPLICANT'S ADDRESS, SHALL PROVIDE THE  STREET  ADDRESS  AT  WHICH  SUCH
 APPLICANT RESIDES. THE APPLICANT SHALL SIGN SUCH APPLICANT'S APPLICATION
 ATTESTING  TO  THE  TRUTH  AND VERACITY OF THE PLACE OF SUCH APPLICANT'S
 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.