S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4032
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2019
                                ___________
 
 Introduced by M. of A. WEPRIN, WOERNER, D'URSO -- read once and referred
   to the Committee on Insurance
 
 AN  ACT  to  amend the insurance law, the penal law, and the vehicle and
   traffic law, in relation to insurance fraud and combatting  the  theft
   of motor vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 401 of the insurance law is amended by adding a new
 subsection (d) to read as follows:
   (D) THE SUPERINTENDENT SHALL HAVE AUTHORITY PURSUANT TO  THIS  CHAPTER
 TO  INVESTIGATE  FRAUDULENT  ACTIVITIES  WITH REGARD TO INDIVIDUALS THAT
 OPERATE MOTOR VEHICLES WITH NO INSURANCE  COVERAGE,  AND  MOTOR  VEHICLE
 INSUREDS  WHO MISREPRESENT THE PRINCIPAL PLACE WHERE INSURED MOTOR VEHI-
 CLES ARE GARAGED AND OPERATED. OPERATING MOTOR VEHICLES  WITHOUT  PROPER
 INSURANCE  IN VIOLATION OF ARTICLE SIX OF THE VEHICLE AND TRAFFIC LAW IS
 A SIGNIFICANT DANGER TO THE PUBLIC BECAUSE DRIVERS ARE UNABLE TO COMPEN-
 SATE INDIVIDUALS FOR PERSONAL INJURIES, DEATH AND PROPERTY  DAMAGE  THEY
 INFLICT  UPON OTHERS.  FURTHERMORE, MOTOR VEHICLE INSUREDS WHO MISREPRE-
 SENT THE PRINCIPAL PLACE WHERE SUCH VEHICLES ARE  GARAGED  AND  OPERATED
 IMPROPERLY  SHIFT  THEIR  HIGH  LIABILITY  EXPOSURE COSTS TO OTHER MOTOR
 VEHICLE INSUREDS THAT DO NOT FACE SUCH HIGH LIABILITY RISK AND INSURANCE
 PREMIUM COSTS.
   § 2. Subsection (a) of section 405 of the insurance law, as amended by
 section 7 of part A of chapter 62 of the laws of  2011,  is  amended  to
 read as follows:
   (a)  Any  person  licensed or registered pursuant to the provisions of
 this chapter, and any person engaged in the  business  of  insurance  or
 life  settlement  in this state who is exempted from compliance with the
 licensing requirements of this chapter, including  the  state  insurance
 fund  of  this state, who has reason to believe that an insurance trans-
 action or life settlement act may be fraudulent, or has knowledge that a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08180-01-9

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 fraudulent insurance transaction or fraudulent life  settlement  act  is
 about  to take place, or has taken place shall, within thirty days after
 determination by such person that the transaction appears to be  fraudu-
 lent, send to the superintendent on a form prescribed by the superinten-
 dent, the information requested by the form and such additional informa-
 tion  relative  to  the factual circumstances of the transaction and the
 parties involved as the superintendent may require.  The  superintendent
 shall  accept  reports of suspected fraudulent insurance transactions or
 fraudulent life settlement acts from any self insurer, including but not
 limited to self insurers  providing  health  insurance  coverage,  THOSE
 PROVIDING  MOTOR VEHICLE LIABILITY INSURANCE or those defined in section
 fifty of the workers' compensation law, and shall treat such reports  as
 any other received pursuant to this section.
   §  3.  Section  2133 of the insurance law, as amended by chapter 77 of
 the laws of 1994, is amended to read as follows:
   § 2133. [Forged] FALSE INSURANCE DOCUMENTS AND FORGED insurance  iden-
 tification  cards.  Any  insurance  company,  insurance agent, insurance
 broker or other person who or which, personally or by the action  of  an
 employee or agent, KNOWINGLY possesses, transfers or uses: (A) ANY DOCU-
 MENT  WHICH  PURPORTS TO EVINCE INSURANCE COVERAGE WHEN SUCH COVERAGE IS
 NOT IN EFFECT OR IS IN EFFECT AT LIMITS LESS THAN THOSE  STATED  IN  THE
 DOCUMENT;  OR  (B)  a  forged  insurance identification card for a motor
 vehicle, having knowledge, personally or through such employee or agent,
 of the fact that such insurance identification card,  when  issued,  did
 not  actually  represent  an  owner's policy of liability insurance or a
 financial security bond issued by an insurance company  licensed  to  do
 business  in  this  state  covering the motor vehicle identified on such
 card, shall be liable for payment to the people of this state of a civil
 penalty in a sum not exceeding one thousand dollars for the  first  such
 violation  and a sum not exceeding five thousand dollars for each subse-
 quent violation. For the purposes  of  this  section  the  term  "forged
 insurance  identification card" means a written insurance identification
 card which has been falsely made, completed or  altered,  and  the  term
 "falsely  made, completed or altered" shall have the same meaning as set
 forth in section 170.00 of the penal law.
   § 4. Section 165.06 of the penal law, as amended by chapter 413 of the
 laws of 1982, is amended to read as follows:
 § 165.06 Unauthorized use of a vehicle in the second degree.
   A person is guilty of unauthorized use of  a  vehicle  in  the  second
 degree when:
   He  OR  SHE  commits the crime of unauthorized use of a vehicle in the
 third degree as defined in subdivision one of  section  165.05  of  this
 article  and  has been previously convicted of the crime of unauthorized
 use of a vehicle [in the third degree] as defined in [subdivision one of
 section 165.05 or second degree] SECTIONS 165.05,  165.06,  AND  165.08,
 AUTO  STRIPPING AS DEFINED IN SECTIONS 165.09, 165.10, AND 165.11, GRAND
 LARCENY OF A MOTOR  VEHICLE  AS  DEFINED  IN  SECTIONS  155.30,  155.35,
 155.40, AND 155.42, CRIMINAL POSSESSION OF STOLEN PROPERTY AS DEFINED IN
 SECTIONS  165.40,  165.45,  165.50,  165.52,   AND 165.54 AND THE STOLEN
 PROPERTY CONSISTED OF A MOTOR VEHICLE, OR ILLEGAL POSSESSION OF A  VEHI-
 CLE  IDENTIFICATION  NUMBER  AS  DEFINED  IN  SECTION  170.70 within the
 preceding ten years.
   Unauthorized use of a vehicle in the second degree is a class E  felo-
 ny.
   §  5.  Subdivision 5 of section 170.10 of the penal law is amended and
 a new subdivision 6 is added to read as follows:

 A. 4032                             3
 
   5. A prescription of a duly licensed physician or other person author-
 ized to issue the same for any drug or any instrument or device used  in
 the  taking  or  administering  of  drugs  for  which  a prescription is
 required by law[.]; OR
   6.  A CERTIFICATE OF INSURANCE OR AN INSURANCE IDENTIFICATION CARD, AS
 DEFINED IN SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
   § 6. Section 170.15 of the penal law is amended to read as follows:
 § 170.15 Forgery in the first degree.
   A person is guilty of forgery in the first degree when, with intent to
 defraud, deceive or injure another, he OR SHE falsely  makes,  completes
 or alters [a]:
   1. TEN OR MORE WRITTEN INSTRUMENTS; OR
   2. A written instrument which is or purports to be, or which is calcu-
 lated to become or to represent if completed:
   [1.]  (A) Part of an issue of money, stamps, securities or other valu-
 able instruments issued by a government or governmental instrumentality;
 or
   [2.] (B) Part of an issue of stock, bonds or other instruments repres-
 enting interests in or claims against a corporate or other  organization
 or its property.
   Forgery in the first degree is a class C felony.
   §  7.  The penal law is amended by adding a new section 175.50 to read
 as follows:
 § 175.50 OFFERING A FALSE APPLICATION FOR  MOTOR  VEHICLE  INSURANCE  OR
            REGISTRATION.
   A  PERSON  IS GUILTY OF OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE
 INSURANCE OR REGISTRATION WHEN KNOWING THAT ANY DOCUMENT HE OR SHE FILES
 WITH THE DEPARTMENT OF MOTOR VEHICLES OR AN INSURER PROVIDING  LIABILITY
 INSURANCE FOR A MOTOR VEHICLE CONTAINS A FALSE STATEMENT OR FALSE INFOR-
 MATION  WITH REGARD TO WHERE HE OR SHE RESIDES OR WHERE HIS OR HER MOTOR
 VEHICLE IS GARAGED AND OPERATED.
   OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR  REGISTRA-
 TION IS A CLASS E FELONY.
   §  8.  Subdivision 1 of section 176.05 of the penal law, as amended by
 chapter 211 of the laws of 2011, is amended to read as follows:
   1. any written statement as part of, or in support of, an  application
 for  the issuance of, or the rating of a commercial insurance policy, or
 certificate or evidence of self insurance  for  commercial  OR  PERSONAL
 insurance  or  commercial  OR  PERSONAL  self  insurance, or a claim for
 payment or other benefit pursuant to an insurance policy or self  insur-
 ance  program  for commercial or personal insurance that he or she knows
 to:
   (a) contain materially false information concerning any fact  material
 thereto; or
   (b) conceal, for the purpose of misleading, information concerning any
 fact material thereto; or
   § 9. Section 176.15 of the penal law, as amended by chapter 515 of the
 laws of 1986, is amended to read as follows:
 § 176.15 Insurance fraud in the fourth degree.
   A  person  is  guilty  of insurance fraud in the fourth degree when he
 [commits] OR SHE:
   1. COMMITS a fraudulent insurance act and  thereby  wrongfully  takes,
 obtains or withholds, or attempts to wrongfully take, obtain or withhold
 property with a value in excess of one thousand dollars; OR
   2.  OPERATES A MOTOR VEHICLE ON A PUBLIC HIGHWAY, WHEN BEING THE OWNER
 OF SUCH MOTOR VEHICLE, HE OR SHE KNOWS THE MOTOR VEHICLE IS INSURED BY A

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 POLICY ISSUED UNDER THE LAWS OF ANOTHER STATE, WHEN  SUCH  PERSON  MAIN-
 TAINS HIS OR HER PRINCIPAL RESIDENCE IN THIS STATE OR SUCH MOTOR VEHICLE
 IS  PRINCIPALLY  GARAGED  IN  THIS  STATE, AND SUCH INSURANCE POLICY WAS
 ISSUED  UPON ANY WRITTEN OR ORAL STATEMENT BY SUCH PERSON THAT HE OR SHE
 PRINCIPALLY RESIDES IN SUCH OTHER STATE OR THAT SUCH  MOTOR  VEHICLE  IS
 PRINCIPALLY GARAGED IN SUCH OTHER STATE.
   Insurance fraud in the fourth degree is a class E felony.
   §  10.  The vehicle and traffic law is amended by adding a new section
 201-a to read as follows:
   § 201-A.  ACCESS  TO  INFORMATION.  THE  DEPARTMENT  SHALL  ALLOW  LAW
 ENFORCEMENT PERSONNEL ACCESS TO ANY INDIVIDUAL'S STREET ADDRESS PROVIDED
 PURSUANT  TO  PARAGRAPH B OF SUBDIVISION ONE OF SECTION FOUR HUNDRED ONE
 AND SUBDIVISION ONE-A OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
   § 11. Paragraph b of subdivision 1 of section 401 of the  vehicle  and
 traffic  law,  as amended by chapter 222 of the laws of 1996, is amended
 to read as follows:
   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
 to be registered, including the name and factory number of such 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
 OFFICE BOX WHEN PROVIDING A RESIDENCE ADDRESS, SUCH APPLICANT SHALL ALSO
 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
 certify as to the seating capacity, and if the omnibus is to be operated
 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
 panel of such vehicle exceeds one hundred inches, the commissioner shall
 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
 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
 contain a statement showing the manufacturer's number or other identifi-
 cation satisfactory to the commissioner and no number plate for a trail-
 er issued under the provisions of  subdivision  three  of  section  four
 hundred  two  of  this [chapter] ARTICLE shall be transferred to or used
 upon any other trailer than the one for which number  plate  is  issued.
 The  commissioner  shall require proof, in the application for registra-

 A. 4032                             5
 
 tion, or otherwise, as such commissioner may determine, that  the  motor
 vehicle  for  which  registration is applied for is equipped with lights
 conforming in all respects to the requirements of this chapter,  and  no
 motor  vehicle shall be registered unless it shall appear by such proofs
 that such motor vehicle is equipped with proper lights as aforesaid. The
 said application shall contain or be accompanied by such evidence of the
 ownership of the motor vehicle described in the application  as  may  be
 required by the commissioner or his OR HER agent and which, with respect
 to  new  vehicles, shall include, unless otherwise specifically provided
 by the commissioner, the manufacturer's statement  of  origin.  Applica-
 tions received by an agent of the commissioner shall be forwarded to the
 commissioner  as  he  OR SHE shall direct for filing. No application for
 registration shall be accepted unless the applicant is at least  sixteen
 years  of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH AND
 VERACITY OF THE FACTS STATED THEREIN.
   § 12. Section 502 of the vehicle and traffic law is amended by  adding
 a new subdivision 1-a to read as follows:
   1-A.  PROVISION  OF STREET ADDRESS. IN ADDITION TO THE REQUIREMENTS OF
 SUBDIVISION ONE OF THIS SECTION, EACH APPLICANT, WHEN PROVIDING  HIS  OR
 HER  ADDRESS,  SHALL  PROVIDE  THE  STREET  ADDRESS  AT  WHICH HE OR SHE
 RESIDES. THE APPLICANT SHALL SIGN HIS OR HER  APPLICATION  ATTESTING  TO
 THE TRUTH AND VERACITY OF THE PLACE OF HIS OR HER RESIDENCE.
   §  13.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law; provided however, that sections  four,
 five,  six,  seven,  eight and nine of this act shall take effect on the
 first of November next succeeding the date on which it shall have become
 a law.