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A04032 Summary:

COSPNSRWoerner, D'Urso
Amd 401, 405 & 2133, Ins L; amd 165.06, 170.10, 170.15, 176.05 & 176.15, add 175.50, Pen L; add 201-a, amd 401 & 502, V & T L
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 such superintendent 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; 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; 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; relates to the crime of unauthorized use of a motor vehicle; adds other motor vehicle related crimes as predicate crimes which may increase punishment for unauthorized use of a motor vehicle in the second degree when one is convicted of such crimes within the preceding ten years.
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A04032 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 31, 2019
        Introduced by M. of A. WEPRIN, WOERNER, D'URSO -- 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 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:
     1    Section 1. Section 401 of the insurance law is amended by adding a new
     2  subsection (d) to read as follows:
     3    (d) The superintendent shall have authority pursuant to  this  chapter
     4  to  investigate  fraudulent  activities  with regard to individuals that
     5  operate motor vehicles with no insurance  coverage,  and  motor  vehicle
     6  insureds  who misrepresent the principal place where insured motor vehi-
     7  cles are garaged and operated. Operating motor vehicles  without  proper
     8  insurance  in violation of article six of the vehicle and traffic law is
     9  a significant danger to the public because drivers are unable to compen-
    10  sate individuals for personal injuries, death and property  damage  they
    11  inflict  upon others.  Furthermore, motor vehicle insureds who misrepre-
    12  sent the principal place where such vehicles are  garaged  and  operated
    13  improperly  shift  their  high  liability  exposure costs to other motor
    14  vehicle insureds that do not face such high liability risk and insurance
    15  premium costs.
    16    § 2. Subsection (a) of section 405 of the insurance law, as amended by
    17  section 7 of part A of chapter 62 of the laws of  2011,  is  amended  to
    18  read as follows:
    19    (a)  Any  person  licensed or registered pursuant to the provisions of
    20  this chapter, and any person engaged in the  business  of  insurance  or
    21  life  settlement  in this state who is exempted from compliance with the
    22  licensing requirements of this chapter, including  the  state  insurance
    23  fund  of  this state, who has reason to believe that an insurance trans-
    24  action or life settlement act may be fraudulent, or has knowledge that a
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 4032                             2
     1  fraudulent insurance transaction or fraudulent life  settlement  act  is
     2  about  to take place, or has taken place shall, within thirty days after
     3  determination by such person that the transaction appears to be  fraudu-
     4  lent, send to the superintendent on a form prescribed by the superinten-
     5  dent, the information requested by the form and such additional informa-
     6  tion  relative  to  the factual circumstances of the transaction and the
     7  parties involved as the superintendent may require.  The  superintendent
     8  shall  accept  reports of suspected fraudulent insurance transactions or
     9  fraudulent life settlement acts from any self insurer, including but not
    10  limited to self insurers  providing  health  insurance  coverage,  those
    11  providing  motor vehicle liability insurance or those defined in section
    12  fifty of the workers' compensation law, and shall treat such reports  as
    13  any other received pursuant to this section.
    14    §  3.  Section  2133 of the insurance law, as amended by chapter 77 of
    15  the laws of 1994, is amended to read as follows:
    16    § 2133. [Forged] False insurance documents and forged insurance  iden-
    17  tification  cards.  Any  insurance  company,  insurance agent, insurance
    18  broker or other person who or which, personally or by the action  of  an
    19  employee or agent, knowingly possesses, transfers or uses: (a) any docu-
    20  ment  which  purports to evince insurance coverage when such coverage is
    21  not in effect or is in effect at limits less than those  stated  in  the
    22  document;  or  (b)  a  forged  insurance identification card for a motor
    23  vehicle, having knowledge, personally or through such employee or agent,
    24  of the fact that such insurance identification card,  when  issued,  did
    25  not  actually  represent  an  owner's policy of liability insurance or a
    26  financial security bond issued by an insurance company  licensed  to  do
    27  business  in  this  state  covering the motor vehicle identified on such
    28  card, shall be liable for payment to the people of this state of a civil
    29  penalty in a sum not exceeding one thousand dollars for the  first  such
    30  violation  and a sum not exceeding five thousand dollars for each subse-
    31  quent violation. For the purposes  of  this  section  the  term  "forged
    32  insurance  identification card" means a written insurance identification
    33  card which has been falsely made, completed or  altered,  and  the  term
    34  "falsely  made, completed or altered" shall have the same meaning as set
    35  forth in section 170.00 of the penal law.
    36    § 4. Section 165.06 of the penal law, as amended by chapter 413 of the
    37  laws of 1982, is amended to read as follows:
    38  § 165.06 Unauthorized use of a vehicle in the second degree.
    39    A person is guilty of unauthorized use of  a  vehicle  in  the  second
    40  degree when:
    41    He  or  she  commits the crime of unauthorized use of a vehicle in the
    42  third degree as defined in subdivision one of  section  165.05  of  this
    43  article  and  has been previously convicted of the crime of unauthorized
    44  use of a vehicle [in the third degree] as defined in [subdivision one of
    45  section 165.05 or second degree] sections 165.05,  165.06,  and  165.08,
    46  auto  stripping as defined in sections 165.09, 165.10, and 165.11, grand
    47  larceny of a motor  vehicle  as  defined  in  sections  155.30,  155.35,
    48  155.40, and 155.42, criminal possession of stolen property as defined in
    49  sections  165.40,  165.45,  165.50,  165.52,   and 165.54 and the stolen
    50  property consisted of a motor vehicle, or illegal possession of a  vehi-
    51  cle  identification  number  as  defined  in  section  170.70 within the
    52  preceding ten years.
    53    Unauthorized use of a vehicle in the second degree is a class E  felo-
    54  ny.
    55    §  5.  Subdivision 5 of section 170.10 of the penal law is amended and
    56  a new subdivision 6 is added to read as follows:

        A. 4032                             3
     1    5. A prescription of a duly licensed physician or other person author-
     2  ized to issue the same for any drug or any instrument or device used  in
     3  the  taking  or  administering  of  drugs  for  which  a prescription is
     4  required by law[.]; or
     5    6.  A certificate of insurance or an insurance identification card, as
     6  defined in section three hundred eleven of the vehicle and traffic law.
     7    § 6. Section 170.15 of the penal law is amended to read as follows:
     8  § 170.15 Forgery in the first degree.
     9    A person is guilty of forgery in the first degree when, with intent to
    10  defraud, deceive or injure another, he or she falsely  makes,  completes
    11  or alters [a]:
    12    1. Ten or more written instruments; or
    13    2. A written instrument which is or purports to be, or which is calcu-
    14  lated to become or to represent if completed:
    15    [1.]  (a) Part of an issue of money, stamps, securities or other valu-
    16  able instruments issued by a government or governmental instrumentality;
    17  or
    18    [2.] (b) Part of an issue of stock, bonds or other instruments repres-
    19  enting interests in or claims against a corporate or other  organization
    20  or its property.
    21    Forgery in the first degree is a class C felony.
    22    §  7.  The penal law is amended by adding a new section 175.50 to read
    23  as follows:
    24  § 175.50 Offering a false application for  motor  vehicle  insurance  or
    25             registration.
    26    A  person  is guilty of offering a false application for motor vehicle
    27  insurance or registration when knowing that any document he or she files
    28  with the department of motor vehicles or an insurer providing  liability
    29  insurance for a motor vehicle contains a false statement or false infor-
    30  mation  with regard to where he or she resides or where his or her motor
    31  vehicle is garaged and operated.
    32    Offering a false application for motor vehicle insurance or  registra-
    33  tion is a class E felony.
    34    §  8.  Subdivision 1 of section 176.05 of the penal law, as amended by
    35  chapter 211 of the laws of 2011, is amended to read as follows:
    36    1. any written statement as part of, or in support of, an  application
    37  for  the issuance of, or the rating of a commercial insurance policy, or
    38  certificate or evidence of self insurance  for  commercial  or  personal
    39  insurance  or  commercial  or  personal  self  insurance, or a claim for
    40  payment or other benefit pursuant to an insurance policy or self  insur-
    41  ance  program  for commercial or personal insurance that he or she knows
    42  to:
    43    (a) contain materially false information concerning any fact  material
    44  thereto; or
    45    (b) conceal, for the purpose of misleading, information concerning any
    46  fact material thereto; or
    47    § 9. Section 176.15 of the penal law, as amended by chapter 515 of the
    48  laws of 1986, is amended to read as follows:
    49  § 176.15 Insurance fraud in the fourth degree.
    50    A  person  is  guilty  of insurance fraud in the fourth degree when he
    51  [commits] or she:
    52    1. commits a fraudulent insurance act and  thereby  wrongfully  takes,
    53  obtains or withholds, or attempts to wrongfully take, obtain or withhold
    54  property with a value in excess of one thousand dollars; or
    55    2.  operates a motor vehicle on a public highway, when being the owner
    56  of such motor vehicle, he or she knows the motor vehicle is insured by a

        A. 4032                             4
     1  policy issued under the laws of another state, when  such  person  main-
     2  tains his or her principal residence in this state or such motor vehicle
     3  is  principally  garaged  in  this  state, and such insurance policy was
     4  issued  upon any written or oral statement by such person that he or she
     5  principally resides in such other state or that such  motor  vehicle  is
     6  principally garaged in such other state.
     7    Insurance fraud in the fourth degree is a class E felony.
     8    §  10.  The vehicle and traffic law is amended by adding a new section
     9  201-a to read as follows:
    10    § 201-a.  Access  to  information.  The  department  shall  allow  law
    11  enforcement personnel access to any individual's street address provided
    12  pursuant  to  paragraph b of subdivision one of section four hundred one
    13  and subdivision one-a of section five hundred two of this chapter.
    14    § 11. Paragraph b of subdivision 1 of section 401 of the  vehicle  and
    15  traffic  law,  as amended by chapter 222 of the laws of 1996, is amended
    16  to read as follows:
    17    b. Every owner of a motor vehicle which shall be  operated  or  driven
    18  upon  the  public  highways  of  this  state  shall, except as otherwise
    19  expressly provided, cause to be presented, by mail or otherwise, to  the
    20  office  or  a  branch office of the commissioner, or to any agent of the
    21  commissioner, constituted as provided in this  chapter,  an  application
    22  for  registration  addressed  to  the commissioner, and on a blank to be
    23  prepared under the direction of and furnished by  the  commissioner  for
    24  that  purpose,  containing: (a) a brief description of the motor vehicle
    25  to be registered, including the name and factory number of such vehicle,
    26  and such other facts as the commissioner shall require; (b)  the  weight
    27  of  the  vehicle  upon which the registration fee is based if the fee is
    28  based on weight; (c) the name and residence,  including  county  of  the
    29  owner  of such motor vehicle, provided that if the applicant uses a post
    30  office box when providing a residence address, such applicant shall also
    31  provide the street address at which he  or  she  resides;  (d)  provided
    32  that,  if  such  motor  vehicle is used or to be used as an omnibus, the
    33  applicant also shall so certify, and in the  case  of  an  omnibus  also
    34  certify as to the seating capacity, and if the omnibus is to be operated
    35  wholly  within a municipality pursuant to a franchise other than a fran-
    36  chise express or implied  in  articles  of  incorporation  upon  certain
    37  streets  designated  in such franchise, those facts shall also be certi-
    38  fied, and a certified copy of such franchise furnished  to  the  commis-
    39  sioner;  (e) provided, that, if such motor vehicle is an altered livery,
    40  the applicant shall so furnish a certified copy of  the  length  of  the
    41  center  panel  of such vehicle, provided, however, that the commissioner
    42  shall require such proof, as he or she may determine  is  necessary,  in
    43  the  application  for  registration  and provided further, if the center
    44  panel of such vehicle exceeds one hundred inches, the commissioner shall
    45  require proof that such vehicle is in  compliance  with  all  applicable
    46  federal  and  state  motor  vehicle safety standards; and (f) such addi-
    47  tional facts or evidence as the commissioner may require  in  connection
    48  with  the  application  for registration. Every owner of a trailer shall
    49  also make application for the registration thereof in the manner  herein
    50  provided  for  an  application  to  register  a motor vehicle, but shall
    51  contain a statement showing the manufacturer's number or other identifi-
    52  cation satisfactory to the commissioner and no number plate for a trail-
    53  er issued under the provisions of  subdivision  three  of  section  four
    54  hundred  two  of  this [chapter] article shall be transferred to or used
    55  upon any other trailer than the one for which number  plate  is  issued.
    56  The  commissioner  shall require proof, in the application for registra-

        A. 4032                             5
     1  tion, or otherwise, as such commissioner may determine, that  the  motor
     2  vehicle  for  which  registration is applied for is equipped with lights
     3  conforming in all respects to the requirements of this chapter,  and  no
     4  motor  vehicle shall be registered unless it shall appear by such proofs
     5  that such motor vehicle is equipped with proper lights as aforesaid. The
     6  said application shall contain or be accompanied by such evidence of the
     7  ownership of the motor vehicle described in the application  as  may  be
     8  required by the commissioner or his or her agent and which, with respect
     9  to  new  vehicles, shall include, unless otherwise specifically provided
    10  by the commissioner, the manufacturer's statement  of  origin.  Applica-
    11  tions received by an agent of the commissioner shall be forwarded to the
    12  commissioner  as  he  or she shall direct for filing. No application for
    13  registration shall be accepted unless the applicant is at least  sixteen
    14  years  of age and has signed such application attesting to the truth and
    15  veracity of the facts stated therein.
    16    § 12. Section 502 of the vehicle and traffic law is amended by  adding
    17  a new subdivision 1-a to read as follows:
    18    1-a.  Provision  of street address. In addition to the requirements of
    19  subdivision one of this section, each applicant, when providing  his  or
    20  her  address,  shall  provide  the  street  address  at  which he or she
    21  resides. The applicant shall sign his or her  application  attesting  to
    22  the truth and veracity of the place of his or her residence.
    23    §  13.  This  act  shall  take effect on the one hundred eightieth day
    24  after it shall have become a law; provided however, that sections  four,
    25  five,  six,  seven,  eight and nine of this act shall take effect on the
    26  first of November next succeeding the date on which it shall have become
    27  a law.
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