Source: https://www.nysenate.gov/legislation/bills/2013/S6318
Timestamp: 2016-08-30 05:15:35
Document Index: 690101583

Matched Legal Cases: ['§401', '§405', '§231', '§846', '§97', '§170', '§175', '§1310', '§201', '§401']

NY State Senate Bill S6318
find your senator senate Bill S6318 2013-2014 Legislative Session Enacts provisions to reduce the incidence of motor vehicle insurance fraud
referred to insurance S6318 - Bill Details
Amd §§401 & 2133, add §405-a, Ins L; add §231, amd §846-m, Exec L; amd §97-mm, St Fin L; amd §§170.10, 170.15, & 176.15, add §175.50, Pen L; amd §§1310, 1311 & 1349, CPLR; add §201-a, amd §401, V & T L
2011-2012: A9037A, S988, S988A2009-2010: S7091A S6318 - Bill Texts
BILL NUMBER:S6318
TITLE OF BILL: An act to amend the insurance law, the executive law,
the state finance law, the penal law, the civil practice law and rules
and the vehicle and traffic law, in relation to insurance fraud; to
establish the temporary task force on motor vehicle insurance fraud;
fraud, including fraud committed by those who misrepresent where they
other Person who knowingly possesses, transfers or uses a., forged
Section 4: Adds a new Executive Law 231 to establish the Insurance
Fraud Reward Program under the supervision of the State Police. This
section establishes a state-wide Insurance Fraud Reward Program to pay
awards to persons who provide information that leads to the arrest and
conviction of persons guilty of fraudulent insurance acts. The
Superintendent of Police shall establish a toll-free hotline and
website to collect tips and information from the general public to
assist the State Police in the investigation and prosecution of
insurance fraud crimes. Awards from $ 1,000 up to $ 5,000 can be paid
for information leading to the arrest and conviction of insurance
fraud crimes. The State Police shall obtain money to finance this
award program from the State Police Motor Vehicle Law Enforcement
Account. Money from this account is received in part from surcharges
levied on all motor vehicle insurance policies issued in New York
pursuant to Insurance Law section 9110.
Section 5: Amends Executive Law section 846-m(2) (a) to provide that
at least 1/4 of the money received by the State Police Motor Vehicle
Law Enforcement Account (collected from a surcharge placed on all auto
insurance policies sold in New York to combat auto insurance fraud)
after January 1, 2011 shall be used to support activities undertaken
by local District Attorney's to combat auto insurance fraud.
Section 6: Amends State Finance Law section 97-mm(3), the State Police
Motor Vehicle Law Enforcement Account, to authorize funds to be used
for the Insurance Fraud Reward Program established pursuant to
Executive Law section 231.
Section 7: Amends State Finance Law section 97-mm(4) to require that
the State Police Annual Auto Theft Prevention Report also include its
efforts to curb automobile insurance fraud.
Section 8: Amends Penal Law section 170.10 to add a new (6) to the
Section 9: Amends Penal Law section 170.15 (Forgery in the First
Section 10: Adds a new Penal Law section 175.50 to make it a class E
registration under this provision, anyone who submits, to the
Section 11: Amends Penal Law section 176.15 which defines the term
Section 12: mends CPLR section 1310(4-b) to include within the
definition of "specified felony offense" the conviction of a person of
crimes of Insurance Fraud pursuant to Article 176 of the Penal Law.
CPLR Article 13-A (of which section 1310 is the definitions section of
this Article) lays out the procedure to seize ill-gotten profits from
criminal activity. Hence, illegally secured profits obtained by
persons from fraudulent insurance acts can be seized and used for
other law enforcement purposes.
Section 13: Amends CPLR section 1311(3-a) to add the commission of
crimes of insurance fraud to the list of crimes in which forfeiture
actions may be taken to seize illegally secured assets or fruits of
Section 14: Amends CPLR section 1311(11) to give the Insurance Frauds
Bureau notice of a forfeiture of assets proceeding and stipulation or
settlement agreement of_such action-which is based on a felony of
Section 15: Amends CPLR section 1349(4) which deals with the disposal
of property obtained from a criminal activity forfeiture action so
that the Insurance Frauds Bureau of the Insurance Department can
obtain those assets. Funds secured from this source can be used to
finance the operations of the Insurance Fraud Bureau or the Insurance
Fraud Prevention program established by Insurance Law section 405-a.
Section 16: A new Vehicle & Traffic Law section 201-a is added to give
1auto insurance premium retina purposes.
Section 17: Amends Vehicle & Traffic Law section 401(1) to require
Section 18: Creates a Temporary Task Force on Motor Vehicle Insurance
Fraud. The Superintendent of Insurance and Commissioner of Motor
Vehicles shall establish a working group to examine the feasibility
and cost effectiveness of developing methodologies to identify owners
and operators of motor vehicles who misrepresent the principle place
of their residence and where they operate and garage their
The Task Force shall have 13 members, with the Superintendent of
Insurance and Commissioner of Motor Vehicles to act as Co-Chairs. The
remaining members are to be appointed as follows: four by the
Governor, 2 by the Temporary President of the Senate, 2 by the Speaker
of the Assembly, one each respectively by each chambers minority
leaders. Task Force members should include representatives of insurers
actively writing motor vehicle insurance, insurance agents and brokers
that actively sell automobile insurance, 2 representatives of
companies that collect, disperse and synthesize data, and 2
representatives of the motor vehicle insurance buying public. The Task
Force should have its recommendations and report completed within 15
The purpose of this bill is to address the ever-increasing incidence
either Upstate or out of state.
as North Carolina, Pennsylvania, or Up-state counties that have much
relegated to motor vehicle accidents. This report is currently being
This situation while artificially lowering the insurance rates of
those who fraudulently do not disclose their true residential address,
substantially increases the insurance premiums paid by those who
truthfully disclose their actual place of residence and where they
operated and garaged their cars. This bill should bring more equity to
those who purchase auto insurance coverages in this state and ensure
that everyone pays their fair share for auto insurance coverages that
matches their actuarial risk of potential physical damage or theft of
their automobiles, risk of personal injury or liability exposure due
to judgments obtain in local courts.
A.4100 of 2011-2012 Referred to Insurance
A.10877 of 2009-2010 Referred to Insurance
The 60th day after becoming law with provisions.
AN ACT to amend the insurance law, the executive law, the state  finance
law,  the  penal law, the civil practice law and rules and the vehicle
and traffic law, in relation to  insurance  fraud;  to  establish  the
temporary  task  force on motor vehicle insurance fraud; and providing
for the repeal of certain provisions upon the expiration thereof
S  2.    The insurance law is amended by adding a new section 405-a to
S 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  AND  OTHER
THAN  A PERSON WHO HAS RECEIVED AN AWARD PURSUANT TO SECTION TWO HUNDRED
THIRTY-ONE OF THE EXECUTIVE LAW, WHO HAS REASON TO BELIEVE THAT A  FRAU-
DULENT  INSURANCE  ACT PROHIBITED PURSUANT TO ARTICLE ONE HUNDRED SEVEN-
TY-SIX OF THE PENAL LAW HAS BEEN COMMITTED OR THAT AN  INSURANCE  TRANS-
ACTION  MAY  BE FRAUDULENT, OR HAS KNOWLEDGE THAT A FRAUDULENT INSURANCE
LBD13415-01-4
S. 6318                             2
TRANSACTION IS ABOUT TO TAKE PLACE, OR HAS TAKEN PLACE MAY  REPORT  SUCH
ACT OR TRANSACTION AND ANY ADDITIONAL INFORMATION RELATIVE TO THE FACTU-
AL  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 NOT MORE THAN  FIFTEEN  PERCENT
OF  THE PROCEEDS OF THE ACTION OR A SETTLEMENT OF THE CLAIM IN AN AMOUNT
NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS.   THE  ATTORNEY  GENERAL  OR
DISTRICT  ATTORNEY  SHALL  RECOMMEND  TO  THE COURT WHEN A SETTLEMENT IS
ENTERED THE AMOUNT OF SUCH AWARD. THE COURT SHALL BASE SUCH AWARD  DECI-
SION  ON THE EXTENT TO WHICH THE PERSON SUBSTANTIALLY CONTRIBUTED TO THE
S  4. The executive law is amended by adding a new section 231 to read
S 231. INSURANCE FRAUD REWARD PROGRAM; ESTABLISHMENT.  1.  THE  SUPER-
INTENDENT  SHALL ESTABLISH A STATEWIDE INSURANCE FRAUD REWARD PROGRAM TO
PAY REWARDS FOR INFORMATION LEADING TO  THE  ARREST  AND  CONVICTION  OF
PERSONS  GUILTY  OF A FRAUDULENT INSURANCE ACT AS DEFINED IN ARTICLE ONE
HUNDRED SEVENTY-SIX OF THE PENAL LAW.
2. THE SUPERINTENDENT SHALL CAUSE TO BE ESTABLISHED A TOLL-FREE STATE-
WIDE TELEPHONE NUMBER AND INTERNET WEBSITE FOR USE IN COLLECTING  INFOR-
MATION TO ASSIST IN THE INVESTIGATION AND PROSECUTION OF INSURANCE FRAUD
3.  THE  SUPERINTENDENT  IS AUTHORIZED TO PROVIDE REWARDS OF UP TO ONE
THOUSAND DOLLARS FOR INFORMATION LEADING TO THE ARREST AND CONVICTION OF
INDIVIDUALS GUILTY OF A FRAUDULENT INSURANCE ACT AS DEFINED  IN  ARTICLE
ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW.
4.  THE  SUPERINTENDENT IS AUTHORIZED TO PROVIDE REWARDS OF UP TO FIVE
INDIVIDUALS GUILTY OF A SPECIFIED OFFENSE IN ARTICLE ONE HUNDRED  SEVEN-
TY-SIX OF THE PENAL LAW.
S. 6318                             3
5.  NO  PERSON  WHO  RECEIVES  COMPENSATION  PURSUANT  TO SECTION FOUR
HUNDRED FIVE-A OF THE INSURANCE LAW  SHALL  BE  ELIGIBLE  FOR  A  REWARD
6.  THE SUPERINTENDENT SHALL DISBURSE THE REWARDS PROVIDED FOR IN THIS
SECTION FROM THE MONEYS APPROPRIATED TO THE  DIVISION  OF  STATE  POLICE
FROM  THE STATE POLICE MOTOR VEHICLE LAW ENFORCEMENT ACCOUNT ESTABLISHED
BY SECTION NINETY-SEVEN-MM OF THE STATE FINANCE LAW, AS ADDED BY SECTION
THREE HUNDRED EIGHTY-SEVEN OF CHAPTER FIFTY-FIVE OF THE LAWS OF NINETEEN
S 5. Paragraph (a) of subdivision 2 of section 846-m of the  executive
law,  as  amended  by  section  6 of part T of chapter 57 of the laws of
(a) The moneys received by the fund shall be expended in a manner that
is consistent with the plan of  operation,  pursuant  to  appropriation,
only  to reimburse costs incurred by provider agencies for pilot program
activities relating to the detection, prevention or reduction  of  motor
vehicle theft and motor vehicle insurance fraud; PROVIDED, HOWEVER, THAT
ON  AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, AT LEAST ONE-QUARTER
OF THE MONEYS RECEIVED BY THE FUND SHALL  BE  DISBURSED  EXCLUSIVELY  TO
SUPPORT EFFORTS UNDERTAKEN BY DISTRICT ATTORNEYS TO DETECT, IDENTIFY AND
PROSECUTE FRAUD PERTAINING TO ARTICLE FIFTY-ONE OF THE INSURANCE LAW.
S  6.  Subdivision  3  of  section  97-mm of the state finance law, as
amended by section 5 of part T of chapter 56 of the  laws  of  2009,  is
3.  Nine  million  one  hundred thousand dollars annually of the state
police motor vehicle law enforcement account, following appropriation by
the legislature and allocation by the director of the budget,  shall  be
made available for the state operation expenses of the division of state
police  including but not limited to the costs of activities relating to
the detection, prosecution or reduction of automobile theft and  related
purposes,  AND  THE  COSTS  OF THE INSURANCE FRAUD REWARD PROGRAM ESTAB-
LISHED PURSUANT TO SECTION TWO HUNDRED THIRTY-ONE OF THE EXECUTIVE  LAW.
All  other  funds  of  the  state  police  motor vehicle law enforcement
account, following appropriation by the legislature  and  allocation  by
the director of the budget, shall be made available for the state opera-
tion  expenses of the division of state police including but not limited
to the costs of activities relating to highway safety and public securi-
S 7. Subdivision 4 of section 97-mm of the state finance law, as added
by section 8 of part T of chapter 57 of the laws of 2000, is amended  to
programmatic  component associated with the automobile theft AND AUTOMO-
BILE INSURANCE FRAUD prevention activities of the state police  for  the
previous year. The report shall include, but not be limited to, a break-
down  of the funds allocated to each programmatic component, including a
breakdown by personal and nonpersonal services and number of  employees,
and  the  number  of  arrests,  convictions, and vehicle recoveries. The
report shall also contain an analysis of  the  incidence  of  automobile
theft  AND AUTOMOBILE INSURANCE FRAUD for each of the state police troop
S 8.  Subdivision 5 of section 170.10 of the penal law is amended  and
S. 6318                             4
S 9. Section 170.15 of the penal law is amended to read as follows:
S  10. The penal law is amended by adding a new section 175.50 to read
S  11.  Section  176.15 of the penal law, as amended by chapter 515 of
S  12.  Paragraph  (c) of subdivision 4-b of section 1310 of the civil
practice law and rules, as added by chapter 655 of the laws of 1990,  is
220.16, 220.34 or 220.39 of the penal law, or a conviction of a criminal
defendant for a violation of section 221.30 of the penal law,  or  where
the  accusatory  instrument  charges  any such felony, conviction upon a
S. 6318                             5
plea of guilty to a felony for which the plea is otherwise authorized by
law, together with evidence which: (i) provides substantial indicia that
the defendant used the real property to engage in a  continual,  ongoing
course  of  conduct involving the unlawful mixing, compounding, manufac-
turing, warehousing, or packaging of controlled substances or where  the
conviction  is for a violation of section 221.30 of the penal law, mari-
juana, as part of an illegal trade or business for gain; and (ii) estab-
or where the conviction is for a violation  of  section  221.30  of  the
penal  law,  marijuana, that such possession was with the intent to sell
it[.]; OR
(D) A CONVICTION OF A PERSON OF ANY  FELONY  DEFINED  IN  ARTICLE  ONE
HUNDRED  SEVENTY-SIX OF THE PENAL LAW, OR OF AN ATTEMPT OR CONSPIRACY TO
COMMIT ANY SUCH FELONY, PROVIDED THAT SUCH ATTEMPT OR CONSPIRACY CONSTI-
TUTES A FELONY.
S 13. Subdivision 3-a of section 1311 of the civil  practice  law  and
rules,  as  added by chapter 655 of the laws of 1990, is amended to read
3-a. Conviction of a person in a criminal action  upon  an  accusatory
instrument  which  includes  one  or  more  of the felonies specified in
subdivision four-b of section thirteen hundred ten of this  article,  of
any  felony other than such felonies, shall not preclude a defendant, in
would not establish the elements of any of  the  felonies  specified  in
guilty.  If the defendant does adduce such evidence, the burden shall be
upon the claiming authority to prove, by clear and convincing  evidence,
that  the conduct underlying the criminal conviction would establish the
elements of the felony specified in such subdivision. Nothing  contained
in  this  subdivision  shall  affect the validity of a settlement of any
criminal action to any felony defined in article ONE HUNDRED SEVENTY-SIX
OR two hundred twenty, or section 221.30 or 221.55 of the penal law,  or
to a felony conspiracy to commit the same.
S  14. Paragraphs (a) and (b) of subdivision 11 of section 1311 of the
civil practice law and rules, as amended by section 47 of  part  A-1  of
(a)  Any  stipulation or settlement agreement between the parties to a
forfeiture action shall be filed with the clerk of the  court  in  which
shall  be  accepted  for filing unless it is accompanied by an affidavit
from the claiming authority that written notice of  the  stipulation  or
office  of  victim  services,  the  [state] division of criminal justice
services, and in the case of a forfeiture based on a felony  defined  in
to  the  [state  division]  OFFICE  of  ALCOHOLISM  AND  substance abuse
services. IN THE CASE OF A FORFEITURE BASED ON A FELONY DEFINED IN ARTI-
CLE ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW, SUCH NOTICE SHALL ALSO  BE
GIVEN  TO  THE  INSURANCE  FRAUDS  BUREAU OF THE DEPARTMENT OF FINANCIAL
S. 6318                             6
has been given to the office of victim services, the [state] division of
criminal  justice  services,  and in the case of a forfeiture based on a
of  the  penal  law,  to  the  [state division] OFFICE of ALCOHOLISM AND
substance abuse services. IN THE CASE OF A FORFEITURE BASED ON A  FELONY
DEFINED IN ARTICLE ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW, SUCH NOTICE
SHALL  ALSO BE GIVEN TO THE INSURANCE FRAUDS BUREAU OF THE DEPARTMENT OF
S 15. Subdivision 4 of section 1349 of  the  civil  practice  law  and
rules, as amended by section 48 of part A-1 of chapter 56 of the laws of
4.  The  claiming  authority shall report the disposal of property and
collection of assets pursuant to this section to the  office  of  victim
services,  the  [state] division of criminal justice services [and], the
[state division] OFFICE of ALCOHOLISM AND substance abuse  services  AND
THE INSURANCE FRAUDS BUREAU OF THE DEPARTMENT OF FINANCIAL SERVICES.
S 17. Paragraph b of subdivision 1 of section 401 of the  vehicle  and
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
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
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
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
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
S. 6318                             7
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
S  18.  Temporary task force on motor vehicle insurance fraud. (a) The
superintendent of financial services and the commissioner of motor vehi-
cles shall convene a temporary task force  on  motor  vehicle  insurance
fraud  to  examine  the feasibility and cost-effectiveness of developing
methodologies to identify owners and operators  of  motor  vehicles  who
misrepresent the principal place of their residence or where their motor
vehicles  are garaged and operated. Such task force shall develop a plan
on the feasibility of implementing a statewide registry  of  the  street
addresses  of  the owners and operators of motor vehicles in this state.
The report issued by this task force shall:
(1) investigate the  feasibility  of  developing  and  implementing  a
statewide  registry  of the addresses of motor vehicle owners and opera-
(2) detail the costs of establishing such a registry;
(3) identify the parameters for entering and retrieving data from such
(4) evaluate the value of establishing such  registry  in  identifying
motor vehicle owners and operators who misrepresent their place of resi-
dence or where their vehicle is garaged and operated.
(b)  The task force shall consist of 13 members. The superintendent of
financial services and the commissioner  of  motor  vehicles,  or  their
designees, shall be members of the task force and shall be the co-chairs
of the task force. A representative of the New York Automobile Insurance
Plan  shall  be a member of the task force. The remaining ten members of
the task force shall be appointed as follows: four shall be appointed by
the governor, two shall be appointed by the temporary president  of  the
senate, two shall be appointed by the speaker of the assembly, one shall
be  appointed  by  the  minority  leader of the senate, and one shall be
appointed by the minority leader of the assembly. Of such  ten  members:
three  shall be representatives of insurers actively writing motor vehi-
cle insurance in this state,  three  shall  be  representatives  of  the
insurance  agent  and  broker  community  actively selling motor vehicle
S. 6318                             8
insurance in this state, two shall be representatives of  companies  the
business of which involves collecting, dispersing and synthesizing data,
and  two  shall be representatives of the motor vehicle insurance buying
(c)  The  task  force  shall  submit  a report to the governor and the
fifteen months of the effective date of this section.
S  19.  This  act shall take effect on the sixtieth day after it shall
have become a law, provided that section  eighteen  of  this  act  shall
expire  and  be deemed repealed eighteen months after the effective date