Bill Text: NY S04847 | 2011-2012 | General Assembly | Introduced
Bill Title: Grants the superintendent of financial services authority to investigate fraudulent activities, such as motor vehicle operators who drive with no insurance coverage, and those who misrepresent their principal place of residence or where their motor vehicle is principally garaged and operated; authorizes such superintendent to accept reports of suspected fraudulent insurance actions; requires insurance companies and self-insurers to report incidents of insurance fraud to the department of financial services; includes within the class D felony of forgery in the second degree, the forgery of a certificate of insurance or an insurance identification card; includes within the class C felony of forgery in the first degree, the forgery of 10 or more written instruments; includes within the class E felony of insurance fraud in the fourth degree, the operation of a motor vehicle in this state when the vehicle is insured in another state, but it is actually garaged in this state or the owner principally resides in this state; requires applicants for motor vehicle registrations and driver's licenses to provide the department of motor vehicles with the address of their principal place of residence.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2012-06-21 - RECOMMITTED TO RULES [S04847 Detail]
Download: New_York-2011-S04847-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4847
2011-2012 Regular Sessions
I N S E N A T E
April 27, 2011
___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed 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
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 401 of the insurance law is amended by adding a new
2 subsection (d) to read as follows:
3 (D) THE SUPERINTENDENT SHALL HAVE BROAD AUTHORITY PURSUANT TO THIS
4 CHAPTER TO INVESTIGATE FRAUDULENT ACTIVITIES WITH REGARD TO MOTOR VEHI-
5 CLE DRIVERS THAT OPERATE AUTOMOBILES WITH NO INSURANCE COVERAGE, AND
6 MOTOR VEHICLE INSUREDS WHO MISREPRESENT THE PRINCIPAL PLACE WHERE
7 INSURED MOTOR VEHICLES ARE GARAGED AND OPERATED. OPERATING MOTOR VEHI-
8 CLES WITHOUT PROPER INSURANCE IN VIOLATION OF ARTICLE SIX OF THE VEHICLE
9 AND TRAFFIC LAW IS A SIGNIFICANT DANGER TO THE PUBLIC BECAUSE DRIVERS
10 ARE UNABLE TO COMPENSATE INDIVIDUALS FOR PERSONAL INJURIES, DEATH AND
11 PROPERTY DAMAGE THEY INFLICT UPON OTHERS. FURTHERMORE, MOTOR VEHICLE
12 INSUREDS WHO MISREPRESENT THE PRINCIPAL PLACE WHERE SUCH VEHICLES ARE
13 GARAGED AND OPERATED IMPROPERLY SHIFT THEIR HIGH LIABILITY EXPOSURE
14 COSTS TO OTHER MOTOR VEHICLE INSUREDS THAT DO NOT FACE SUCH HIGH LIABIL-
15 ITY RISK AND INSURANCE PREMIUM COSTS.
16 S 2. Subsection (a) of section 405 of the insurance law, as amended by
17 section 7 of part A of chapter 62 of the laws of 2011, is amended to
18 read as follows:
19 (a) Any person licensed or registered pursuant to the provisions of
20 this chapter, and any person engaged in the business of insurance or
21 life settlement in this state who is exempted from compliance with the
22 licensing requirements of this chapter, including the state insurance
23 fund of this state, who has reason to believe that an insurance trans-
24 action or life settlement act may be fraudulent, or has knowledge that a
25 fraudulent insurance transaction or fraudulent life settlement act is
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05004-04-1
S. 4847 2
1 about to take place, or has taken place shall, within thirty days after
2 determination by such person that the transaction appears to be fraudu-
3 lent, send to the superintendent on a form prescribed by the superinten-
4 dent, the information requested by the form and such additional informa-
5 tion relative to the factual circumstances of the transaction and the
6 parties involved as the superintendent may require. The superintendent
7 shall accept reports of suspected fraudulent insurance transactions or
8 fraudulent life settlement acts from any self insurer, including but not
9 limited to self insurers providing health insurance coverage or those
10 defined in section fifty of the workers' compensation law, and shall
11 treat such reports as any other received pursuant to this section. THE
12 SUPERINTENDENT SHALL ACCEPT REPORTS OF SUSPECTED FRAUDULENT INSURANCE
13 TRANSACTIONS FROM ANY SELF INSURER INCLUDING, BUT NOT LIMITED TO, SELF
14 INSURERS PROVIDING HEALTH INSURANCE COVERAGE, THOSE PROVIDING MOTOR
15 VEHICLE LIABILITY INSURANCE OR THOSE DEFINED IN SECTION FIFTY OF THE
16 WORKERS' COMPENSATION LAW, AND SHALL TREAT SUCH REPORTS AS ANY OTHER
17 RECEIVED PURSUANT TO THIS SECTION.
18 S 3. Section 2133 of the insurance law, as amended by chapter 77 of
19 the laws of 1994, is amended to read as follows:
20 S 2133. [Forged] FALSE INSURANCE DOCUMENTS AND FORGED insurance iden-
21 tification cards. Any insurance company, insurance agent, insurance
22 broker or other person who or which, personally or by the action of an
23 employee or agent, KNOWINGLY possesses, transfers or uses: (A) ANY DOCU-
24 MENT WHICH PURPORTS TO EVINCE INSURANCE COVERAGE WHEN SUCH COVERAGE IS
25 NOT IN EFFECT OR IS IN EFFECT AT LIMITS LESS THAN THOSE STATED IN THE
26 DOCUMENT; OR (B) a forged insurance identification card for a motor
27 vehicle, having knowledge, personally or through such employee or agent,
28 of the fact that such insurance identification card, when issued, did
29 not actually represent an owner's policy of liability insurance or a
30 financial security bond issued by an insurance company licensed to do
31 business in this state covering the motor vehicle identified on such
32 card, shall be liable for payment to the people of this state of a civil
33 penalty in a sum not exceeding one thousand dollars for the first such
34 violation and a sum not exceeding five thousand dollars for each subse-
35 quent violation. For the purposes of this section the term "forged
36 insurance identification card" means a written insurance identification
37 card which has been falsely made, completed or altered, and the term
38 "falsely made, completed or altered" shall have the same meaning as set
39 forth in section 170.00 of the penal law.
40 S 4. Subdivision 5 of section 170.10 of the penal law is amended and
41 a new subdivision 6 is added to read as follows:
42 5. A prescription of a duly licensed physician or other person author-
43 ized to issue the same for any drug or any instrument or device used in
44 the taking or administering of drugs for which a prescription is
45 required by law[.]; OR
46 6. A CERTIFICATE OF INSURANCE OR AN INSURANCE IDENTIFICATION CARD, AS
47 DEFINED IN SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
48 S 5. Section 170.15 of the penal law is amended to read as follows:
49 S 170.15 Forgery in the first degree.
50 A person is guilty of forgery in the first degree when, with intent to
51 defraud, deceive or injure another, he OR SHE falsely makes, completes
52 or alters [a]:
53 1. TEN OR MORE WRITTEN INSTRUMENTS; OR
54 2. A written instrument which is or purports to be, or which is calcu-
55 lated to become or to represent if completed:
S. 4847 3
1 [1.] (A) Part of an issue of money, stamps, securities or other valu-
2 able instruments issued by a government or governmental instrumentality;
3 or
4 [2.] (B) Part of an issue of stock, bonds or other instruments repres-
5 enting interests in or claims against a corporate or other organization
6 or its property.
7 Forgery in the first degree is a class C felony.
8 S 6. The penal law is amended by adding a new section 175.50 to read
9 as follows:
10 S 175.50 OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR
11 REGISTRATION.
12 A PERSON IS GUILTY OF OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE
13 INSURANCE OR REGISTRATION WHEN KNOWING THAT ANY DOCUMENT HE OR SHE FILES
14 WITH THE DEPARTMENT OF MOTOR VEHICLES OR AN INSURER PROVIDING LIABILITY
15 INSURANCE FOR A MOTOR VEHICLE CONTAINS A FALSE STATEMENT OR FALSE INFOR-
16 MATION WITH REGARD TO WHERE HE OR SHE RESIDES OR WHERE HIS OR HER MOTOR
17 VEHICLE IS GARAGED AND OPERATED.
18 OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR REGISTRA-
19 TION IS A CLASS E FELONY.
20 S 7. Subdivision 1 of section 176.05 of the penal law, as amended by
21 chapter 635 of the laws of 1996 and as designated by chapter 2 of the
22 laws of 1998, is amended to read as follows:
23 1. A fraudulent insurance act is committed by any person who, knowing-
24 ly and with intent to defraud presents, causes to be presented, or
25 prepares with knowledge or belief that it will be presented to or by an
26 insurer, self insurer, or purported insurer, or purported self insurer,
27 or any agent thereof, any written statement as part of, or in support
28 of, an application for the issuance of, or the rating of a commercial
29 insurance policy, or certificate or evidence of self insurance for
30 commercial OR PERSONAL insurance or commercial OR PERSONAL self insur-
31 ance, or a claim for payment or other benefit pursuant to an insurance
32 policy or self insurance program for commercial or personal insurance
33 which he knows to: (i) contain materially false information concerning
34 any fact material thereto; or (ii) conceal, for the purpose of mislead-
35 ing, information concerning any fact material thereto.
36 S 8. Section 176.15 of the penal law, as amended by chapter 515 of the
37 laws of 1986, is amended to read as follows:
38 S 176.15 Insurance fraud in the fourth degree.
39 A person is guilty of insurance fraud in the fourth degree when he
40 [commits] OR SHE:
41 1. COMMITS a fraudulent insurance act and thereby wrongfully takes,
42 obtains or withholds, or attempts to wrongfully take, obtain or withhold
43 property with a value in excess of one thousand dollars; OR
44 2. OPERATES A MOTOR VEHICLE ON A PUBLIC HIGHWAY, WHEN SUCH MOTOR VEHI-
45 CLE IS INSURED BY A POLICY ISSUED UNDER THE LAWS OF ANOTHER STATE, WHEN
46 SUCH PERSON MAINTAINS HIS OR HER PRINCIPAL RESIDENCE IN THIS STATE OR
47 SUCH MOTOR VEHICLE IS PRINCIPALLY GARAGED IN THIS STATE, AND SUCH INSUR-
48 ANCE POLICY WAS ISSUED UPON ANY WRITTEN OR ORAL STATEMENT BY SUCH PERSON
49 THAT HE OR SHE PRINCIPALLY RESIDES IN SUCH OTHER STATE OR THAT SUCH
50 MOTOR VEHICLE IS PRINCIPALLY GARAGED IN SUCH OTHER STATE.
51 Insurance fraud in the fourth degree is a class E felony.
52 S 9. The vehicle and traffic law is amended by adding a new section
53 201-a to read as follows:
54 S 201-A. ACCESS TO INFORMATION. THE DEPARTMENT SHALL ALLOW LAW
55 ENFORCEMENT PERSONNEL ACCESS TO ANY INDIVIDUAL'S STREET ADDRESS PROVIDED
S. 4847 4
1 PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF SECTION FOUR HUNDRED ONE
2 AND SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
3 S 10. Paragraph b of subdivision 1 of section 401 of the vehicle and
4 traffic law, as amended by chapter 222 of the laws of 1996, is amended
5 to read as follows:
6 b. Every owner of a motor vehicle which shall be operated or driven
7 upon the public highways of this state shall, except as otherwise
8 expressly provided, cause to be presented, by mail or otherwise, to the
9 office or a branch office of the commissioner, or to any agent of the
10 commissioner, constituted as provided in this chapter, an application
11 for registration addressed to the commissioner, and on a blank to be
12 prepared under the direction of and furnished by the commissioner for
13 that purpose, containing: (a) a brief description of the motor vehicle
14 to be registered, including the name and factory number of such vehicle,
15 and such other facts as the commissioner shall require; (b) the weight
16 of the vehicle upon which the registration fee is based if the fee is
17 based on weight; (c) the name and residence, including county of the
18 owner of such motor vehicle, PROVIDED THAT IF THE APPLICANT USES A POST
19 OFFICE BOX WHEN PROVIDING A RESIDENCE ADDRESS, SUCH APPLICANT SHALL ALSO
20 PROVIDE THE STREET ADDRESS AT WHICH HE OR SHE RESIDES; (d) provided
21 that, if such motor vehicle is used or to be used as an omnibus, the
22 applicant also shall so certify, and in the case of an omnibus also
23 certify as to the seating capacity, and if the omnibus is to be operated
24 wholly within a municipality pursuant to a franchise other than a fran-
25 chise express or implied in articles of incorporation upon certain
26 streets designated in such franchise, those facts shall also be certi-
27 fied, and a certified copy of such franchise furnished to the commis-
28 sioner; (e) provided, that, if such motor vehicle is an altered livery,
29 the applicant shall so furnish a certified copy of the length of the
30 center panel of such vehicle, provided, however, that the commissioner
31 shall require such proof, as he OR SHE may determine is necessary, in
32 the application for registration and provided further, if the center
33 panel of such vehicle exceeds one hundred inches, the commissioner shall
34 require proof that such vehicle is in compliance with all applicable
35 federal and state motor vehicle safety standards; and (f) such addi-
36 tional facts or evidence as the commissioner may require in connection
37 with the application for registration. Every owner of a trailer shall
38 also make application for the registration thereof in the manner herein
39 provided for an application to register a motor vehicle, but shall
40 contain a statement showing the manufacturer's number or other identifi-
41 cation satisfactory to the commissioner and no number plate for a trail-
42 er issued under the provisions of subdivision three of section four
43 hundred two of this [chapter] ARTICLE shall be transferred to or used
44 upon any other trailer than the one for which number plate is issued.
45 The commissioner shall require proof, in the application for registra-
46 tion, or otherwise, as such commissioner may determine, that the motor
47 vehicle for which registration is applied for is equipped with lights
48 conforming in all respects to the requirements of this chapter, and no
49 motor vehicle shall be registered unless it shall appear by such proofs
50 that such motor vehicle is equipped with proper lights as aforesaid. The
51 said application shall contain or be accompanied by such evidence of the
52 ownership of the motor vehicle described in the application as may be
53 required by the commissioner or his OR HER agent and which, with respect
54 to new vehicles, shall include, unless otherwise specifically provided
55 by the commissioner, the manufacturer's statement of origin. Applica-
56 tions received by an agent of the commissioner shall be forwarded to the
S. 4847 5
1 commissioner as he OR SHE shall direct for filing. No application for
2 registration shall be accepted unless the applicant is at least sixteen
3 years of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH AND
4 VERACITY OF THE FACTS STATED THEREIN.
5 S 11. Subdivision 1 of section 502 of the vehicle and traffic law, as
6 amended by section 2 of part CC of chapter 58 of the laws of 2011, is
7 amended to read as follows:
8 1. Application for license. Application for a driver's license shall
9 be made to the commissioner. The fee prescribed by law may be submitted
10 with such application. The applicant shall furnish such proof of identi-
11 ty, age, ADDRESS OF HIS OR HER RESIDENCE and fitness as may be required
12 by the commissioner. WHEN PROVIDING HIS OR HER ADDRESS OF RESIDENCE, THE
13 APPLICANT SHALL PROVIDE THE STREET ADDRESS AT WHICH HE OR SHE RESIDES.
14 EACH APPLICANT SHALL SIGN HIS OR HER APPLICATION ATTESTING TO THE TRUTH
15 AND VERACITY OF THE FACTS STATED THEREIN. The commissioner may also
16 provide that the application procedure shall include the taking of a
17 photo image or images of the applicant in accordance with rules and
18 regulations prescribed by the commissioner. In addition, the commission-
19 er also shall require that the applicant provide his or her social secu-
20 rity number and provide space on the application so that the applicant
21 may register in the New York state organ and tissue donor registry under
22 section forty-three hundred ten of the public health law. In addition,
23 an applicant for a commercial driver's license who will operate a
24 commercial motor vehicle in interstate commerce shall certify that such
25 applicant meets the requirements to operate a commercial motor vehicle,
26 as set forth in public law 99-570, title XII, and title 49 of the code
27 of federal regulations, and all regulations promulgated by the United
28 States secretary of transportation under the hazardous materials trans-
29 portation act. In addition, an applicant for a commercial driver's
30 license shall submit a medical certificate at such intervals as required
31 by the federal motor carrier safety improvement act of 1999 and Part
32 383.71(h) of title 49 of the code of federal regulations relating to
33 medical certification and in a manner prescribed by the commissioner.
34 For purposes of this section and sections five hundred three and five
35 hundred ten-a of this title, the term "medical certificate" shall mean a
36 form substantially in compliance with the form set forth in Part
37 391.43(h) of title 49 of the code of federal regulations. Upon a deter-
38 mination that the holder of a commercial driver's license has made any
39 false statement, with respect to the application for such license, the
40 commissioner shall revoke such license.
41 S 12. This act shall take effect on the same date and in the same
42 manner as part A of chapter 62 of the laws of 2011 takes effect, as
43 provided in subdivision (a) of section 114 of such part, provided that
44 sections nine, ten and eleven of this act shall take effect on the same
45 date and in the same manner as section 2 of part CC of chapter 58 of the
46 laws of 2011 takes effect.
