New York Assembly Bill A10224

New York 2025-2026 Regular Session

• Introduced: 2/12/26
• Refer: 2/12/26

Caption

Enacts the "fraudulent claims reduction and unlawful deception act"

Summary

A10224 would create new criminal offenses and insurance-law penalties aimed at fraudulent insurance claims tied to construction sites and motor vehicle accidents. The bill defines “fraudulent insurance claim,” “construction site,” and “motor vehicle accident claim,” and adds a new felony offense for staging or fabricating a construction-site accident for insurance purposes, as well as a separate felony offense for staging collisions or submitting false auto insurance claims. It also covers people who assist, conspire, encourage, or facilitate the fraud, including purported injured workers and certain professionals who knowingly participate. The bill further amends the Insurance Law to require restitution to insurers, civil penalties, and temporary exclusion from state-regulated insurance benefits for convicted offenders. It directs the Superintendent of Financial Services to adopt implementing regulations, requires insurers to notify law enforcement of suspected fraud and cooperate in investigations, and mandates annual fraud reporting to the Legislature. The bill also calls for additional resources for insurance fraud units and would take effect 180 days after becoming law.

Impact

The bill would amend both the Penal Law and the Insurance Law by adding new sections specifically targeting staged construction-site accidents and staged motor vehicle collisions. It would create class E felony liability for these acts, expand potential criminal exposure to accomplices and facilitators, and impose restitution, civil penalties, and temporary insurance benefit exclusions on convicted persons. It would also impose new compliance and reporting duties on insurers and require regulatory implementation by the Department of Financial Services and coordination with criminal justice agencies.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed as a strong anti-fraud and cost-reduction proposal. Its stated purpose is to lower insurance premiums, deter staged accidents, and improve fairness in the insurance system, suggesting a generally punitive and enforcement-oriented approach. No contrary viewpoints are documented in the provided materials, so the available record reflects support for tougher fraud enforcement rather than a contested policy debate.

Contention

The main points of potential contention are the bill’s broad reach and its enhanced criminal and civil penalties. It extends liability not only to people who stage accidents but also to those who “assist,” “encourage,” or “orchestrate” claims, which could raise concerns about overbreadth or proof standards. The bill also singles out construction and auto claims fraud for special treatment, and it requires insurers to report suspected fraud and cooperate with law enforcement, which may be viewed as increasing compliance burdens. No specific objections or supporters are recorded in the provided committee materials.