NY State Senate Bill 2009-S2888

Senate Bill S2888

2009-2010 Legislative Session

Requires a report relating to insurance fraud to include the incidence of misrepresentation by insureds of the principal place where vehicles are garaged and driven

download bill text pdf

Archive: Last Bill Status - In Senate Committee Codes Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to codes
Mar 05, 2009	referred to codes

2009-S2888 (ACTIVE) - Details

Current Committee:: Senate Codes
Law Section:: Penal Law
Laws Affected:: Amd §176.05, Pen L; amd §405, Ins L

2009-S2888 (ACTIVE) - Summary

Requires that the report due to the governor and to legislative leaders relating to insurance fraud include the incidence of misrepresentation by insureds of the principal place where vehicles are garaged and driven.

2009-S2888 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2888

 TITLE OF BILL :
An act to amend the penal law and the insurance law, in relation to
motor vehicle insurance fraud


 PURPOSE :
To make certain that the incidence of misrepresentation by insureds as
to where the principal place of motor vehicles are garaged and driven
will be considered as a fraudulent insurance act.

 SUMMARY OF PROVISIONS :
Section 1 of the bill amends subdivision 1 of section 176.05 of the
Penal Law, as amended by chapter 635 of the laws of 1996 and
designated by Chapter 2 of the Laws of 1998, is amended to provide
that the rating of a policy insuring against the losses or liabilities
arising out of the ownership, operation or use of a motor vehicle,
will be considered to be committing a fraudulent insurance act.

Section 2 of the bill amends paragraph 11 of Subsection (d) of Section
405 of the insurance law, is amended to add that the incidence of
misrepresentation by insureds of the principal place where motor
vehicles are garaged and driven is subject to assessment of law
enforcement and insurance companies.

 EXISTING LAW :
Existing law does not provide that the misrepresentation by insureds
in relation to the place where motor vehicles are garaged and driven,
to be a fraudulent insurance act.

 JUSTIFICATION :
Within the metro areas of New York State automobile insurance is
appropriately higher in relation to the more rural areas of New York.
The reasons for higher rates of automobile insurance in Metro areas
include higher incidences as accidents, theft and damage.  The
practice of misrepresenting the place where an automobile is garaged
or driven is a dishonest way of reducing the costs paid for insurance.
Residents of areas where insurance costs are higher should not be
permitted to pay lower rates for automobile insurance based simply on
documentation that says their motor vehicle is garaged in an area
where insurance costs are lower. This act of insurance fraud is
causing an imbalance in the insurance pool of some regions in less
populated areas of New York State, causing rates for less populated
regions to be artificially inflated. This legislation would seek to
end this imbalance and to assure that residents of metro areas pay
insurance based on where they reside.

 LEGISLATIVE HISTORY :

2007-2008: S.474 - Senate Codes Committee
2005-06: S.616 - DIED IN CODES
2003-04: S.692 - DIED IN SENATE INSURANCE COMMITTEE
1999-2000:  S.2519 - DIED IN SENATE INSURANCE COMMITTEE

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become law.

2009-S2888 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2888

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 5, 2009
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Codes

AN ACT to amend the penal law and the  insurance  law,  in  relation  to
  motor vehicle insurance fraud

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of  section  176.05  of  the  penal  law,  as
amended  by  chapter 635 of the laws of 1996 and designated by chapter 2
of the laws of 1998, is amended to read as follows:
  1. A fraudulent insurance act is committed by any person who, knowing-
ly and with intent to defraud  presents,  causes  to  be  presented,  or
prepares with knowledge  or belief that it will be presented to or by an
insurer,  self insurer, or purported insurer, or purported self insurer,
or any agent thereof, any written statement as part of,  or  in  support
of, an application for the issuance of, or the rating of a POLICY INSUR-
ING  AGAINST  LOSSES OR LIABILITIES ARISING OUT OF THE OWNERSHIP, OPERA-
TION, OR USE OF A MOTOR  VEHICLE,  A  commercial  insurance  policy,  or
certificate  or  evidence  of self insurance for commercial insurance or
commercial self insurance, or a  claim  for  payment  or  other  benefit
pursuant to an insurance policy or self insurance program for commercial
or  personal  insurance which he OR SHE knows to: (i) contain materially
false information concerning any fact material thereto; or (ii) conceal,
for the purpose of misleading, information concerning any fact  material
thereto.
  S  2.  Paragraph  11 of subsection (d) of section 405 of the insurance
law, as added by chapter 678 of the laws of 1997, is amended to read  as
follows:
  (11) an assessment of law enforcement and insurance company activities
to detect and curtail the incidence of operating a motor vehicle without
proper  insurance coverage as required by this chapter AND THE INCIDENCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09948-01-9

S. 2888                             2

OF MISREPRESENTATION BY INSUREDS OF  THE  PRINCIPAL  PLACE  WHERE  MOTOR
VEHICLES ARE GARAGED AND DRIVEN.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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