Enacts the "fraudulent claims reduction and unlawful deception act" or "FRAUD act"; establishes the crimes of staging a construction site accident for insurance fraud and auto insurance fraud involving staged collisions and fabricated claims; provides for enhanced penalties and enforcement for construction site and auto claims fraud.
Impact
The enactment of S09135 is intended to foster a more transparent and accountable insurance system by establishing enhanced criminal penalties for those convicted of insurance fraud. This includes mandatory restitution to insurers for amounts paid due to fraudulent claims, civil penalties, and possible exclusion from state-regulated insurance benefits for individuals found guilty. By targeting the root causes of insurance fraud, the bill aims to mitigate the financial burden on both insurance providers and policyholders, which could potentially reduce overall insurance premiums for consumers.
Summary
Bill S09135, also referred to as the 'Fraudulent Claims Reduction and Unlawful Deception Act,' aims to amend the penal and insurance laws in New York to address the significant issue of fraudulent insurance claims. The legislation focuses specifically on fraudulent activities such as staging construction site accidents and creating fake auto insurance claims. By outlining these offenses as criminal actions with set penalties, the bill seeks to provide a clearer legal framework for prosecution and prevention of such frauds, which have been increasing in recent years and contribute to rising insurance costs across the state.
Contention
While the primary goal of S09135 is to reduce fraudulent claims and thereby lower insurance costs, concerns have been raised regarding its implementation. Critics argue that the bill may inadvertently create hurdles for legitimate claimants who could be unfairly scrutinized under stricter enforcement protocols. Additionally, there is apprehension about the adequacy of resources allocated for enforcement and whether such measures would sufficiently deter fraud without penalizing honest individuals or construction workers who may face heightened scrutiny as a result of this legislation.
Same As
Enacts the "fraudulent claims reduction and unlawful deception act" or "FRAUD act"; establishes the crimes of staging a construction site accident for insurance fraud and auto insurance fraud involving staged collisions and fabricated claims; provides for enhanced penalties and enforcement for construction site and auto claims fraud.
Enacts the "fraudulent claims reduction and unlawful deception act" or "FRAUD act"; establishes the crimes of staging a construction site accident for insurance fraud and auto insurance fraud involving staged collisions and fabricated claims; provides for enhanced penalties and enforcement for construction site and auto claims fraud.
Establishing procedures for a civil action instituted by the commissioner of insurance related to fraudulent insurance acts, providing that expunged criminal records will be disclosed in any application for licensure as an insurance producer or public adjuster if the arrest, conviction or diversion is for a fraudulent insurance act and including automobile assigned claims plans in provisions related to fraudulent insurance acts.
Establishing procedures for a civil action instituted by the commissioner of insurance related to fraudulent insurance acts, providing that expunged criminal records will be disclosed in any application for licensure as an insurance producer or public adjuster if the arrest, conviction or diversion is for a fraudulent insurance act and including automobile assigned claims plans in provisions related to fraudulent insurance acts.
Prohibits title insurance corporations from making payments to lenders on title insurance claims when the transaction conveying such title is false or fraudulent.
Prohibits title insurance corporations from making payments to lenders on title insurance claims when the transaction conveying such title is false or fraudulent.
Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.
Providing for the capital budget for fiscal year 2025-2026; itemizing public improvement projects, furniture and equipment projects, transportation assistance, redevelopment assistance projects, flood control projects and Pennsylvania Fish and Boat Commission projects leased or assisted by the Department of General Services and other State agencies, together with their estimated financial costs; authorizing the incurring of debt without the approval of the electors for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies; authorizing the use of current revenue for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies stating the estimated useful life of the projects; and making appropriations.
Providing for the capital budget for fiscal year 2025-2026; itemizing public improvement projects, furniture and equipment projects, transportation assistance, redevelopment assistance projects, flood control projects and Pennsylvania Fish and Boat Commission projects leased or assisted by the Department of General Services and other State agencies, together with their estimated financial costs; authorizing the incurring of debt without the approval of the electors for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies; authorizing the use of current revenue for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies stating the estimated useful life of the projects; and making appropriations.