New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 5 - Executive Orders (George E. Pataki) › Section 5.109 - Executive order no. 109: establishing a special prosecutor to investigate and prosecute criminal acts relating to fraudulent motor vehicle insurance claims

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, the Comprehensive Motor Vehicle Insurance
					 Reparations Act (commonly known as the "No-Fault law") was enacted by the New
					 York State Legislature over twenty-five years ago to ensure that every accident
					 victim will be compensated for economic loss, promptly and without regard to
					 fault;
WHEREAS, this No-Fault system has succeeded in stabilizing
					 the costs of automobile insurance in this State while benefitting consumers by
					 combining a package of first-party benefits for economic losses resulting from
					 injury and prompt payment of such benefits, in return for allowing suits for
					 non-economic damages only for specified serious injuries;
WHEREAS, recently there has been a dramatic increase in the
					 cost of some motor vehicle insurance coverages, and much of this increase is
					 attributable to fraudulent and abusive motor vehicle insurance claims
					 practices. In fact, it has been alleged that motor vehicle insurance fraud may
					 cost the average New York consumer hundreds of dollars per year in higher
					 insurance premiums;
WHEREAS, fraudulent and abusive claims activity harms
					 consumers, health care providers and insurers by increasing insurance costs,
					 slowing claims processing and payment, and creating an increasingly adversarial
					 relationship among affected parties;
WHEREAS, law enforcement agencies and District Attorneys
					 have made significant efforts to combat this growing motor vehicle insurance
					 fraud problem and have acted with diligence to prosecute insurance cases in
					 their jurisdictions. The investigation, development and prosecution of such
					 cases require significant resources, however, and existing resources are being
					 stretched in these efforts to respond to this fast-growing problem;
WHEREAS, it is necessary to bolster and augment the
					 important work being done by our State's law enforcement and prosecutorial
					 communities by directing additional prosecutorial and investigative resources
					 in areas where fraudulent motor vehicle insurance activity is prevalent;
WHEREAS, the benefit to be derived from such efforts can be
					 increased further by fostering greater coordination among prosecutors and law
					 enforcement officials in their battle against motor vehicle insurance
					 fraud.
NOW, THEREFORE, I, GEORGE E. PATAKI, Governor of the State
					 of New York, by virtue of the authority vested in me by the Constitution and
					 Laws of the State of New York, and particularly by subdivision eight of section 63  of the Executive Law, and in accordance with the statute and law in such
					 cases made and provided, find it to be in the public interest to require that
					 the Attorney General inquire, in the circumstances and the manner hereafter
					 provided, into matters concerning public peace, public safety and public
					 justice with respect to criminal acts relating to fraudulent motor vehicle
					 insurance claims.
I. Special
				  Prosecutor
1. I hereby appoint the Attorney
				  General as Special Prosecutor to coordinate the investigatory and prosecutorial
				  efforts pursuant to this Executive Order. The Attorney General and such
				  deputies and assistants as he deems necessary shall have the powers and duties
				  specified in subdivision eight of section 63  of the Executive Law for the
				  purposes of this Executive Order.
2. The Superintendent of the Division of
				  State Police and the Superintendent of the Department of Insurance are directed
				  to authorize the Attorney General, pursuant to the provisions of subdivision
				  three of section 63  of the Executive Law and the statutes and law in such cases
				  made and provided, to conduct an investigation of the alleged commission of any
				  indictable offense or offenses as provided by the Penal, Insurance or Vehicle
				  and Traffic Laws arising out of motor vehicle insurance claims, or to other
				  crimes related to this activity or uncovered by the Attorney General in
				  connection with his activities pursuant to this Executive Order, and to
				  prosecute the person or persons believed to have committed the same and any
				  crime or offense arising out of such investigation or prosecution or both,
				  including, but not limited to, appearing before and presenting all such matters
				  to a grand jury.
3. The Special
				  Prosecutor is requested and authorized to cooperate with and assist District
				  Attorneys, the Division of State Police, the Insurance Department, the Division
				  of Criminal Justice Services and other law enforcement officials in their
				  efforts against fraudulent or otherwise criminal acts committed in violation of
				  any laws of this State in connection with motor vehicle insurance
				  claims.