NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A851
SPONSOR: Blankenbush TITLE OF BILL:
An act to amend the insurance law, in relation to providing premium
reductions for successful completion of a fraud prevention course
PURPOSE OR GENERAL IDEA OF BILL:
Provides for insurance premium reductions for successful completion of a
fraud prevention course
SUMMARY OF PROVISIONS:
Section 1. Section 2336 of the insurance law is amended by adding a new
subsection (i) to read as follows:
Any schedule of rates or rating plan for motor vehicle liability,
comprehensive, collision and personal inquiry protection coverages
submitted to the superintendent shall provide for an appropriate
reduction in premium charges for any insured for a period of two years
after successfully completing a fraud prevention course, known as the
New York auto fraud prevention program.
JUSTIFICATION:
Due to the rising costs associated with insurance fraud, consumers pay
higher health and auto premiums year after year. There is a real risk
to public safety as insureds and third-party claimants are targets of
various fraud schemes including staged accidents, identity theft, and
medical fraud involving unnecessary and invasive medical treatment - all
to increase profits for opportunistic fraudsters. A solution to this
growing problem is to educate consumers on the inherent risks associated
with insurance fraud. An educated consumer is less likely to participate
and /or fall victim to a fraud scheme. This proposed bill will require
insurers to offer a premium reduction to insureds who complete a fraud
prevention course known as the New York Auto Fraud Prevention Program.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect on the first day of January next succeeding
the date on which it shall have become a law and shall apply to all
policies issued, renewed, modified, altered or amended on or after such
date.
STATE OF NEW YORK
________________________________________________________________________
851
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. BLANKENBUSH, BRABENEC -- read once and referred
to the Committee on Insurance
AN ACT to amend the insurance law, in relation to providing premium
reductions for successful completion of a fraud prevention course
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2336 of the insurance law is amended by adding a
2 new subsection (i) to read as follows:
3 (i) Any schedule of rates or rating plan for motor vehicle liability,
4 comprehensive, collision and personal injury protection coverages
5 submitted to the superintendent shall provide for an appropriate
6 reduction in premium charges for any insured for a period of two years
7 after successfully completing a fraud prevention course, known as the
8 New York auto fraud prevention program.
9 § 2. This act shall take effect on the first day of January next
10 succeeding the date on which it shall have become a law and shall apply
11 to all policies issued, renewed, modified, altered or amended on or
12 after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03298-01-5
