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A04347 Summary:

BILL NOA04347
 
SAME ASNo Same As
 
SPONSORWeprin
 
COSPNSR
 
MLTSPNSR
 
Amd 401 & 405, Ins 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; requires insurance companies and self-insurers to report incidents of insurance fraud, relating to automobile liability insurance, to the department of financial services.
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A04347 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4347
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 4, 2019
                                       ___________
 
        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Insurance
 
        AN ACT to amend the insurance law, in relation to insurance fraud
 
          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
    25  fraudulent insurance transaction or fraudulent life  settlement  act  is
    26  about  to take place, or has taken place shall, within thirty days after
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05590-01-9

        A. 4347                             2
 
     1  determination by such person that the transaction appears to be  fraudu-
     2  lent, send to the superintendent on a form prescribed by the superinten-
     3  dent, the information requested by the form and such additional informa-
     4  tion  relative  to  the factual circumstances of the transaction and the
     5  parties involved as the superintendent may require.  The  superintendent
     6  shall  accept  reports of suspected fraudulent insurance transactions or
     7  fraudulent life settlement acts from any self insurer, including but not
     8  limited to self insurers  providing  health  insurance  coverage,  those
     9  providing  motor vehicle liability insurance or those defined in section
    10  fifty of the workers' compensation law, and shall treat such reports  as
    11  any other received pursuant to this section.
    12    § 3. This act shall take effect on the one hundred eightieth day after
    13  it shall have become a law.
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