Fighting Auto Insurance Fraud

Senate Passes Klein Bill to Increase Penalties for Criminals who Forge Auto Insurance Cards

State Senator and Deputy Majority Leader Jeffrey D. Klein (D-Bronx/Westchester) announced on Thursday that the NYS Senate passed his legislation to impose tougher penalties on those who commit auto insurance fraud, helping to keep down insurance premium costs for those who properly insure their vehicles.

“When even one New Yorker skirts the law, we all pay the price. Forgery is a crime and by passing this legislation we send a clear message to those who may think forging an auto insurance card is a minor offense - we will catch you and you will be held accountable,” said State Senator and Deputy Majority Leader Jeffrey D. Klein (D-Bronx/Westchester).

Klein’s bill (S.1897/NYS Assembly same-as A.9996/Zebrowski ) would make it a felony to forge an auto insurance card or certificate of insurance. In New York State, these documents are necessary to obtain government issued documents, such as a vehicle registration, required to legally operate a motor vehicle. Forged insurance cards and documents are often used to fraudulently register cars so that owners may operate them without paying auto insurance premiums. Klein’s bill also makes the selling of ten or more false insurance cards or documents a felony.

The Independent Insurance Agents and Brokers of New York (IIABNY), and the National Conference of Insurance Legislators support the legislation.