2023 New York Laws › ISC - Insurance › Article 4 - Insurance Frauds Prevention › 403 - Prohibitions.

§  403.  Prohibitions. (a) In this article, "fraudulent insurance act"
means insurance fraud as defined in section 176.05 of the penal law; and
the terms "personal insurance" and "commercial insurance" shall have the
same meaning ascribed to them by section 176.00 of such law.
(b) For the purpose of section one hundred nine of this chapter, it is
a violation of this chapter for any  individual,  firm,  association  or
corporation  subject  to  the  provisions  of  this  chapter to commit a
fraudulent insurance act or a fraudulent life settlement act.
(c) In addition to any criminal liability arising under the provisions
of this section, the superintendent shall be empowered to levy  a  civil
penalty  not exceeding five thousand dollars and the amount of the claim
for each violation upon any person, including those  persons  and  their
employees  licensed  pursuant to this chapter, who is found to have: (i)
committed a fraudulent insurance act, fraudulent life settlement act  or
otherwise violates the provisions of this section; or (ii) knowingly and
with  intent  to defraud files, makes, or assists, solicits or conspires
with another to file or make an application  for  a  premium  reduction,
pursuant  to  subsection  (a)  of  section  two  thousand  three hundred
thirty-six of this chapter, containing any materially false  information
or which, for the purpose of misleading, conceals information concerning
any fact material thereto.
(d)  All  applications  for commercial insurance, individual, group or
blanket accident and health insurance and all  claim  forms,  except  as
provided  for  in subsection (e) of this section, shall contain a notice
in a  form  approved  by  the  superintendent  that  clearly  states  in
substance the following:
"Any  person  who  knowingly  and with intent to defraud any insurance
company or other person files an application for insurance or  statement
of  claim  containing  any materially false information, or conceals for
the purpose of misleading,  information  concerning  any  fact  material
thereto, commits a fraudulent insurance act, which is a crime, and shall
also  be  subject to a civil penalty not to exceed five thousand dollars
and the stated value of the claim for each such violation."
(e) All applications for automobile  insurance  and  all  claim  forms
shall  contain  a notice, in a form approved by the superintendent, that
clearly states in substance the following:
"Any person who knowingly makes or knowingly assists, abets,  solicits
or  conspires  with  another  to  make  a  false  report  of  the theft,
destruction, damage  or  conversion  of  any  motor  vehicle  to  a  law
enforcement  agency,  the  department  of motor vehicles or an insurance
company, commits a fraudulent insurance act, which is a crime, and shall
also be subject to a civil penalty not to exceed five  thousand  dollars
and  the  value  of  the  subject motor vehicle or stated claim for each
violation."
(f) In this article, "fraudulent life settlement act" means a fraud as
defined in section 176.40 of the penal law.