Add §§5110 & 405-a, amd §§5102, 5103, 5108, 5106, 5303, Ins L; amd Pen L, generally; amd §846-m, Exec L
Enacts the New York automobile insurance fraud and premium reduction act; provides that this act is aimed at reducing insurance fraud and thus lowering the cost of insurance premiums; provides a provision for compensation to a person that reports insurance fraud to the authorities; further provides that this act also increases the penalty for insurance fraud; appropriates $3,100,000 therefor.
STATE OF NEW YORK
________________________________________________________________________
2109
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
Introduced by M. of A. BLANKENBUSH, BRABENEC, DeSTEFANO, DURSO, GOODELL,
HAWLEY, McDONOUGH -- read once and referred to the Committee on Insur-
ance
AN ACT to amend the insurance law, the penal law and the executive law,
in relation to establishing the New York automobile insurance fraud
and premium reduction act; and making an appropriation therefor
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "New York
2 automobile insurance fraud and premium reduction act".
3 § 2. The insurance law is amended by adding a new section 5110 to read
4 as follows:
5 § 5110. Certification of managed care organizations. (a)(1) Any indi-
6 vidual or group authorized to provide medical or other health care
7 services in this state may, directly or through an authorized insurer,
8 make written application to the superintendent to become certified to
9 provide managed care to injured covered persons under this article.
10 (2) Certification shall be valid for such period and for such service
11 areas as the superintendent may prescribe, unless sooner revoked,
12 suspended or amended.
13 (3) Each application for certification shall be accompanied by a
14 reasonable fee prescribed by the superintendent and a proposed managed
15 care program detailing its significant features, methods and procedures.
16 (b) Application for certification shall be made in such form and
17 manner, and shall set forth such information regarding the proposed plan
18 of managed care for providing medical and other health care services, as
19 the superintendent may prescribe, including:
20 (1) the names and credentials of all individuals or organizations that
21 will provide services under the managed care program, together with
22 appropriate evidence of compliance with any licensing or certification
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06766-01-3
A. 2109 2
1 requirements for such individuals or organizations to practice in this
2 state;
3 (2) a description of the times, places and manner of providing
4 services under the managed care program;
5 (3) a description of the times, places and manner of providing other
6 related optional services the applicant may wish to provide; and
7 (4) a description and representative copies of all remuneration and
8 related arrangements between the managed care organization and individ-
9 ual providers of services under the managed care program.
10 (c) The superintendent shall certify an applicant, if the superinten-
11 dent finds that the managed care program:
12 (1) provides medical and other health care services that meet quality,
13 continuity and other treatment standards prescribed by the superinten-
14 dent or the commissioner of health, in a manner that is timely, effec-
15 tive and convenient for injured persons;
16 (2) includes a sufficient number of each category of provider through-
17 out the proposed service areas to give injured persons adequate flexi-
18 bility to choose an authorized provider from among those health care
19 providers who participate in the managed care program;
20 (3) provides appropriate financial incentives or other approaches to
21 reduce costs and minimize improper utilization without sacrificing qual-
22 ity of service;
23 (4) provides adequate methods of peer review, utilization review, and
24 dispute resolution, including where applicable, access to the external
25 appeal process as provided in article forty-nine of this chapter, in
26 order to: (A) prevent inappropriate or excessive treatment; (B) avoid
27 conflicts of interest; (C) exclude from participation in the program
28 those providers who violate reasonable treatment standards; and (D)
29 provide for the resolution of medical disputes;
30 (5) provides a timely and accurate method of reporting to the super-
31 intendent or the commissioner of health as appropriate, necessary infor-
32 mation regarding medical and health care service cost and utilization to
33 monitor the effectiveness of the managed care program;
34 (6) provides a mechanism for an injured person to obtain treatment
35 outside of the managed care program if the services are not available or
36 accessible within the program;
37 (7) provides for a reasonable and appropriate coordination with anoth-
38 er health care provider where the injured person has been receiving
39 treatment from another health care provider for a previously existing
40 condition or injury which has been aggravated by the motor vehicle acci-
41 dent;
42 (8) provides for a mechanism for notification about and transition
43 from emergency care; and
44 (9) complies with any other requirement the superintendent determines
45 is necessary to provide quality medical and other health care services
46 to injured persons.
47 (d) The superintendent may certify a health maintenance organization
48 issued a certificate of authority under article forty-four of the public
49 health law or licensed under article forty-three of this chapter, if it
50 meets the requirements of this section. The superintendent may also
51 certify an accident and health insurer, including a corporation organ-
52 ized under article forty-three of this chapter, which has a participat-
53 ing or preferred network of providers if such insurer meets the require-
54 ments of this section. To the extent a managed care organization has
55 been reviewed, approved or certified by another state agency as to
56 accessibility, quality or continuity of care or for any of the other
A. 2109 3
1 matters within the superintendent's review, the superintendent shall
2 consider the review, approval or certification of another state agency
3 so as not to duplicate those reviews, approvals or certifications.
4 However, nothing in this subsection shall be deemed to limit the super-
5 intendent's authority to impose and review additional requirements or
6 standards above and beyond those imposed by another state agency to the
7 extent those requirements or standards are necessary or appropriate for
8 implementation of this section.
9 (e) The superintendent shall refuse to certify, or may revoke, or
10 suspend or amend the certification of, any managed care organization, if
11 the superintendent finds that:
12 (1) the managed care program for providing services fails to meet the
13 requirements of this section; or
14 (2) service under the managed care program is not being provided in
15 accordance with its terms as described in the application for certif-
16 ication.
17 (f) For purposes of this section, the superintendent may consider
18 whether providers utilized by a managed care organization or otherwise
19 authorized to provide services under the contract are authorized to
20 render medical care in accordance with section thirteen-b of the work-
21 ers' compensation law.
22 (g) Utilization review, quality assurance and peer review activities
23 pursuant to this section shall be subject to review by the superinten-
24 dent and the commissioner of health. Findings by the commissioner of
25 health of professional misconduct, or disciplinary actions in relation
26 thereto, shall be reported to the appropriate licensing boards and the
27 superintendent.
28 (h) Data generated by or received in connection with these activities,
29 including written reports, notes or records of any such activities or of
30 the review thereof, shall be confidential and shall not be disclosed,
31 except to the extent determined to be necessary by the superintendent or
32 the commissioner of health. No data generated by utilization review,
33 quality assurance or peer review activities pursuant to this section, or
34 the review thereof, shall be used in any action, suit or proceeding,
35 except to the extent determined to be necessary by the superintendent or
36 the commissioner.
37 (i) A person participating in utilization review, quality assurance,
38 or peer review activities pursuant to this section shall not be examined
39 as to any communication made in the course of such activities or the
40 findings thereof, nor shall any such person be subject to a civil action
41 for actions taken or statements made in good faith.
42 (j) Provided that there is compliance with standards governing managed
43 care established by the superintendent, no person who participates in
44 forming any network, collectively negotiating fees, or otherwise solic-
45 its or enters into contracts in a good faith effort, to provide medical
46 or other health care services on a managed care basis in accordance with
47 the provisions of this section, shall be subject to antitrust liability
48 regarding such participation.
49 (k) The provisions of this section shall not affect the confidentiali-
50 ty or admission in evidence of a claimant's medical treatment records.
51 (l) The superintendent, in consultation with the commissioner of
52 health, shall adopt such rules as may be necessary to carry out the
53 provisions of this section.
54 § 3. Paragraph 1 of subsection (a) of section 5102 of the insurance
55 law, as amended by chapter 601 of the laws of 2022, is amended to read
56 as follows:
A. 2109 4
1 (1) All necessary expenses incurred for: (i) medical, hospital
2 (including services rendered in compliance with article forty-one of the
3 public health law, whether or not such services are rendered directly by
4 a hospital), surgical, nursing, dental, ambulance, x-ray, prescription
5 drug and prosthetic services; (ii) psychiatric, physical therapy
6 (provided that treatment is rendered pursuant to a referral) and occupa-
7 tional therapy and rehabilitation (provided that treatment is rendered
8 pursuant to a referral); (iii) any non-medical remedial care and treat-
9 ment rendered in accordance with a religious method of healing recog-
10 nized by the laws of this state; and (iv) any other professional health
11 services; all without limitation as to time, provided that within one
12 year after the date of the accident causing the injury it is ascertaina-
13 ble that further expenses may be incurred as a result of the injury. For
14 the purpose of determining basic economic loss, the expenses incurred
15 under this paragraph shall be in accordance with the limitations of
16 section five thousand one hundred eight of this article Medical treat-
17 ments, diagnostic tests and services provided by the policy shall be
18 rendered in accordance with commonly accepted protocols and professional
19 standards and practices which are commonly accepted as being beneficial
20 for the treatment of the covered injury. Protocols and professional
21 standards and practices which are deemed to be commonly accepted pursu-
22 ant to this section shall be those recognized by national standard
23 setting organizations, national or state professional organizations of
24 the same discipline as the treating provider or those designated or
25 approved by the superintendent in consultation with professional licens-
26 ing boards in the department of health and the department of education.
27 The superintendent, in consultation with the commissioners of health and
28 education, may reject the use of protocols, standards and practices or
29 lists of diagnostic tests set by any organization deemed not to have
30 standing or general recognition by the provider community or applicable
31 licensing boards. Protocols shall be deemed to establish guidelines as
32 to standard appropriate treatment and diagnostic tests for injuries
33 sustained in automobile accidents, but the establishment of standard
34 treatment protocols or protocols for the administration of diagnostic
35 tests shall not be interpreted in such a manner as to preclude variance
36 when warranted by reason of medical necessity. The policy form may
37 provide for pre-certification of certain procedures, treatments, diag-
38 nostic tests or other services or for the purchase of durable medical
39 goods or equipment, except that no pre-certification requirement shall
40 apply within ten days of the accident giving rise to the injury.
41 § 4. Subsection (d) of section 5103 of the insurance law is amended to
42 read as follows:
43 (d) Insurance policy forms for insurance to satisfy the requirements
44 of subsection (a) [hereof] of this section shall be subject to approval
45 pursuant to article twenty-three of this chapter. Minimum benefit stand-
46 ards for such policies and for self-insurers, and rights of subrogation,
47 examination and other such matters, shall be established by regulation
48 pursuant to section three hundred one of this chapter, provided, howev-
49 er, that effective immediately such regulation shall be deemed to
50 include new provisions applicable to injuries which occur on or after
51 the effective date of the chapter of the laws of two thousand twenty-
52 three that amended this subsection and established the New York automo-
53 bile insurance fraud and premium reduction act. Such regulation shall
54 provide that the initial filing of a notice of the existence of a claim
55 or claims for first party benefits by a covered person shall be made
56 within thirty days of sustaining an injury for which such claim or
A. 2109 5
1 claims may be made, but which permit the filing of such initial notice
2 of the existence of a claim or claims as soon as reasonably practicable
3 after the expiration of such thirty day period where the nature of the
4 injury results in a reasonably justifiable delay in filing the initial
5 notice during such thirty day period.
6 § 5. Section 5108 of the insurance law is amended by adding a new
7 subsection (d) to read as follows:
8 (d) Proof of the fact and cost of a medical or health service or
9 treatment which is needed for a covered person to receive payment or
10 reimbursement for that portion of a claim or claims attributable to such
11 service or treatment, whether such proof is submitted to a first party
12 or additional first party benefits insurer by the covered person or
13 directly by a medical professional or health services provider on behalf
14 of such covered person, for a service rendered by the medical or health
15 services provider to the covered person shall be submitted within
16 forty-five days from the date the service was rendered to the covered
17 person. At the option of the insurer, in any case where multiple or
18 continuing medical or health treatments or services are required, such
19 time limit may be waived and the claims of one or more such medical or
20 health service providers may be bundled.
21 § 6. Section 5106 of the insurance law, subsection (b) as amended by
22 chapter 452 of the laws of 2005, subsection (d) as amended by section 8
23 of part AAA of chapter 59 of the laws of 2017 and paragraph 2 of
24 subsection (d) as amended by chapter 129 of the laws of 2022, is amended
25 to read as follows:
26 § 5106. Fair claims settlement. (a) Payments of first party benefits
27 and additional first party benefits shall be made as the loss is
28 incurred. Such benefits are overdue if not paid within [thirty] forty-
29 five days after the claimant supplies proof of the fact and amount of
30 loss sustained. If proof is not supplied as to the entire claim, the
31 amount which is supported by proof is overdue if not paid within [thir-
32 ty] forty-five days after such proof is supplied. All overdue payments
33 shall bear interest at the rate of two percent per month. If a valid
34 claim or portion was overdue, the claimant shall also be entitled to
35 recover his attorney's reasonable fee, for services necessarily
36 performed in connection with securing payment of the overdue claim,
37 subject to limitations promulgated by the superintendent in regulations.
38 The failure to issue a denial of a claim within the forty-five day peri-
39 od provided for in this subsection shall not preclude the insurer from
40 raising a defense to the claim where the insurer has made a report to
41 the insurance frauds bureau pursuant to section four hundred five of
42 this chapter. An insurer will also not be precluded from establishing
43 that the claimant has failed to meet its prima facie burden of proof.
44 (b) Every insurer shall [provide] notify a claimant [with the option
45 of submitting] that any dispute involving the insurer's liability to pay
46 first party benefits, or additional first party benefits, the amount
47 thereof or any other matter which may arise pursuant to subsection (a)
48 of this section [to] must be settled by arbitration pursuant to simpli-
49 fied procedures to be promulgated or approved by the superintendent.
50 Such simplified procedures shall include an expedited eligibility hear-
51 ing option, when required, to designate the insurer for first party
52 benefits pursuant to subsection (d) of this section. The expedited
53 eligibility hearing option shall be a forum for eligibility disputes
54 only, and shall not include the submission of any particular bill,
55 payment or claim for any specific benefit for adjudication, nor shall it
56 consider any other defense to payment.
A. 2109 6
1 (c) An award by an arbitrator shall be binding except where vacated or
2 modified by a master arbitrator in accordance with simplified procedures
3 to be promulgated or approved by the superintendent. The grounds for
4 vacating or modifying an arbitrator's award by a master arbitrator shall
5 not be limited to those grounds for review set forth in article seven-
6 ty-five of the civil practice law and rules. The award of a master arbi-
7 trator shall be binding except for the grounds for review set forth in
8 article seventy-five of the civil practice law and rules[, and provided
9 further that where the amount of such master arbitrator's award is five
10 thousand dollars or greater, exclusive of interest and attorney's fees,
11 the insurer or the claimant may institute a court action to adjudicate
12 the dispute de novo].
13 (d) (1) Except as provided in paragraph two of this subsection, where
14 there is reasonable belief more than one insurer would be the source of
15 first party benefits, the insurers may agree among themselves, if there
16 is a valid basis therefor, that one of them will accept and pay the
17 claim initially. If there is no such agreement, then the first insurer
18 to whom notice of claim is given shall be responsible for payment. Any
19 such dispute shall be resolved in accordance with the arbitration proce-
20 dures established pursuant to section five thousand one hundred five of
21 this article and regulations as promulgated by the superintendent, and
22 any insurer paying first-party benefits shall be reimbursed by other
23 insurers for their proportionate share of the costs of the claim and the
24 allocated expenses of processing the claim, in accordance with the
25 provisions entitled "other coverage" contained in regulation and the
26 provisions entitled "other sources of first-party benefits" contained in
27 regulation. If there is no such insurer and the motor vehicle accident
28 occurs in this state, then an applicant who is a qualified person as
29 defined in article fifty-two of this chapter shall institute the claim
30 against the motor vehicle accident indemnification corporation.
31 (2) A group policy issued pursuant to section three thousand four
32 hundred fifty-five or three thousand four hundred fifty-eight of this
33 chapter shall provide first party benefits when a dispute exists as to
34 whether a driver was using or operating a motor vehicle in connection
35 with a transportation network company or peer-to-peer car sharing
36 program when loss, damage, injury, or death occurs. A transportation
37 network company or peer-to-peer car sharing program administrator shall
38 notify the insurer that issued the owner's policy of liability insurance
39 of the dispute within ten business days of becoming aware that the
40 dispute exists. When there is a dispute, the group insurer liable for
41 the payment of first party benefits under a group policy shall have the
42 right to recover the amount paid from the driver's insurer or in the
43 case of a peer-to-peer car sharing program, the shared vehicle owner's
44 insurer to the extent that the driver would have been liable to pay
45 damages in an action at law.
46 § 7. Subsection (c) of section 5303 of the insurance law is amended to
47 read as follows:
48 (c) Such plan shall provide for the method of classifying risks,
49 establishing territories and making rates applicable thereto. Such
50 rates[, except with respect to rates for the minimum limits of insurance
51 required by article six or seven of the vehicle and traffic law,] shall
52 be based upon loss and expense experience of the risks insured pursuant
53 to the plan.
54 § 8. The insurance law is amended by adding a new section 405-a to
55 read as follows:
A. 2109 7
1 § 405-a. Compensation for report of insurance fraud to law enforce-
2 ment authorities. (a) Any person, other than persons described in
3 subsection (a) of section four hundred five of this article, who has
4 reason to believe that a fraudulent insurance act prohibited pursuant to
5 article one hundred seventy-six of the penal law has been committed or
6 that an insurance transaction may be fraudulent, or has knowledge that a
7 fraudulent insurance transaction is about to take place, or has taken
8 place may report such act or transaction and any additional information
9 relative to the factual circumstances of the transaction and the parties
10 involved to the attorney general, district attorney or insurance frauds
11 bureau.
12 (b) If the insurance frauds bureau recommends to the attorney general
13 or district attorney to commence an action or if the attorney general or
14 district attorney commences an action based on information provided by a
15 person pursuant to subsection (a) of this section, then such person
16 shall be entitled to receive an award of at least fifteen percent, but
17 not more than twenty-five percent of the proceeds of the action or
18 settlement of the claim up to a maximum of twenty-five thousand dollars.
19 The attorney general or district attorney shall recommend to the court
20 when a settlement is entered the amount of such award. The court shall
21 base such award decision on the extent to which the person substantially
22 contributed to the prosecution of the action.
23 § 9. Section 176.00 of the penal law is amended by adding three new
24 subdivisions 6, 7 and 8 to read as follows:
25 6. "Provider" means an attorney, a health care professional, an owner
26 or operator of a health care practice or facility, any person who
27 creates the impression that he or she, or his or her practice can
28 provide legal or health care services, or any person employed or acting
29 on behalf of any such person.
30 7. "Public media" means telephone directories, professional directo-
31 ries, newspapers and other periodicals, radio and television, bill-
32 boards, and mailed or electronically transmitted written communications
33 that do not involve in-person contact with a specific prospective
34 client, patient, or customer.
35 8. "Runner" means a person who, for a pecuniary benefit, procures or
36 attempts to procure a client, patient or customer at the direction of,
37 request of or in cooperation with a provider when such person knows or
38 has reason to know that the purpose of such provider is to seek to
39 falsely or fraudulently: obtain benefits under a contract of insurance;
40 or assert a claim against an insured or an insurance carrier for provid-
41 ing services to the client, patient or customer. Such term shall not
42 include a person who procures or attempts to procure clients, patients
43 or customers for a provider through public media or a person who refers
44 clients, patients or customers as authorized by law. Nothing in this
45 article shall be deemed to prohibit an agent, broker or employee of a
46 health maintenance organization from seeking to sell health maintenance
47 organization coverage or health insurance coverage to an individual or
48 group.
49 § 10. Subdivision 1 of section 176.05 of the penal law, as amended by
50 chapter 211 of the laws of 2011, is amended to read as follows:
51 1. any written statement as part of, or in support of, an application
52 for the issuance of, or the rating of a policy insuring against losses
53 or liabilities arising out of the ownership, operation, or use of a
54 motor vehicle, a commercial insurance policy, or certificate or evidence
55 of self insurance for commercial insurance or commercial self insurance,
56 or a claim for payment or other benefit pursuant to an insurance policy
A. 2109 8
1 or self insurance program for commercial or personal insurance that he
2 or she knows to:
3 (a) contain materially false information concerning any fact material
4 thereto; or
5 (b) conceal, for the purpose of misleading, information concerning any
6 fact material thereto; or
7 § 11. The penal law is amended by adding a new section 176.66 to read
8 as follows:
9 § 176.66 Unlawful procurement of clients, patients or customers.
10 A person is guilty of unlawful procurement of clients, patients or
11 customers when, he or she knowingly:
12 1. acts as a runner; or
13 2. uses, solicits, directs, hires or employs another person to act as
14 a runner.
15 Unlawful procurement of clients, patients or customers is a class E
16 felony.
17 § 12. Section 176.15 of the penal law, as amended by chapter 515 of
18 the laws of 1986, is amended to read as follows:
19 § 176.15 Insurance fraud in the fourth degree.
20 A person is guilty of insurance fraud in the fourth degree when he or
21 she commits a fraudulent insurance act and thereby wrongfully takes,
22 obtains or withholds, or attempts to wrongfully take, obtain or withhold
23 property with a value in excess of [one thousand] five hundred dollars.
24 Insurance fraud in the fourth degree is a class E felony.
25 § 13. Section 176.20 of the penal law, as amended by chapter 515 of
26 the laws of 1986, is amended to read as follows:
27 § 176.20 Insurance fraud in the third degree.
28 A person is guilty of insurance fraud in the third degree when he or
29 she commits a fraudulent insurance act and thereby wrongfully takes,
30 obtains or withholds, or attempts to wrongfully take, obtain or withhold
31 property with a value in excess of [three] one thousand five hundred
32 dollars.
33 Insurance fraud in the third degree is a class D felony.
34 § 14. Section 176.25 of the penal law, as added by chapter 515 of the
35 laws of 1986, is amended to read as follows:
36 § 176.25 Insurance fraud in the second degree.
37 A person is guilty of insurance fraud in the second degree when he or
38 she commits a fraudulent insurance act and thereby wrongfully takes,
39 obtains or withholds, or attempts to wrongfully take, obtain or withhold
40 property with a value in excess of [fifty] twenty-five thousand dollars.
41 Insurance fraud in the second degree is a class C felony.
42 § 15. Section 176.30 of the penal law, as added by chapter 515 of the
43 laws of 1986, is amended to read as follows:
44 § 176.30 Insurance fraud in the first degree.
45 A person is guilty of insurance fraud in the first degree when he or
46 she commits a fraudulent insurance act and thereby wrongfully takes,
47 obtains or withholds, or attempts to wrongfully take, obtain or withhold
48 property with a value in excess of [one million] five hundred thousand
49 dollars.
50 Insurance fraud in the first degree is a class B felony.
51 § 16. Section 176.35 of the penal law, as added by chapter 635 of the
52 laws of 1996, is amended to read as follows:
53 § 176.35 Aggravated insurance fraud in the third degree.
54 A person is guilty of aggravated insurance fraud in the [fourth] third
55 degree when he or she commits [a fraudulent insurance act] the offense
56 of insurance fraud in the fifth degree, and has been previously
A. 2109 9
1 convicted within the preceding five years of any offense, an essential
2 element of which is the commission of a fraudulent insurance act.
3 Aggravated insurance fraud in the [fourth] third degree is a class D
4 felony.
5 § 17. The penal law is amended by adding two new sections 176.36 and
6 176.37 to read as follows:
7 § 176.36 Aggravated insurance fraud in the second degree.
8 A person is guilty of aggravated insurance fraud in the second degree
9 when he or she commits the offense of insurance fraud in the fourth
10 degree, and has been previously convicted within the preceding five
11 years of any offense, an essential element of which is the commission of
12 a fraudulent insurance act.
13 Aggravated insurance fraud in the second degree is a class C felony.
14 § 176.37 Aggravated insurance fraud in the first degree.
15 A person is guilty of aggravated insurance fraud in the first degree
16 when he or she commits the offense of insurance fraud in the third
17 degree, and has been previously convicted within the preceding five
18 years of any offense, an essential element of which is the commission of
19 a fraudulent insurance act.
20 Aggravated insurance fraud in the first degree is a class B felony.
21 § 18. Paragraph (a) of subdivision 2 of section 846-m of the executive
22 law, as amended by section 6 of part T of chapter 57 of the laws of
23 2000, is amended to read as follows:
24 (a) The moneys received by the fund shall be expended in a manner that
25 is consistent with the plan of operation, pursuant to appropriation,
26 only to reimburse costs incurred by provider agencies for pilot program
27 activities relating to the detection, prevention or reduction of motor
28 vehicle theft and motor vehicle insurance fraud, provided, however, that
29 beginning January first, two thousand twenty-four, additional monies
30 received by the fund pursuant to an appropriation made by a chapter of
31 the laws of two thousand twenty-three establishing the New York automo-
32 bile insurance fraud and premium reduction act shall be used exclusively
33 to support efforts undertaken by district attorneys to detect, identify
34 and prosecute fraud pertaining to article fifty-one of the insurance
35 law.
36 § 19. No later than eighteen months after the effective date of this
37 act, the superintendent of financial services shall study, evaluate and
38 report to the governor and legislature on the impact and effect of this
39 act on private passenger automobile insurance costs, by rating territo-
40 ry, in New York state. The superintendent of financial services shall
41 recommend for each insurer, by rating territory, a one-time premium
42 reduction for the insurance required pursuant to article 51 of the
43 insurance law that reflects the reduced cost of this type of coverage as
44 a result of the provisions enacted pursuant to this act. Notwithstanding
45 the provisions of article 23 of the insurance law, any such recommended
46 reduction shall be binding unless demonstrated by an insurer, based on
47 sound underwriting and actuarial principles reasonably related to actual
48 or anticipated loss experience, that such reduction would result in
49 underwriting losses for policies issued in such rating territory.
50 § 20. The sum of three million one hundred thousand dollars
51 ($3,100,000), or so much thereof as may be necessary, is hereby appro-
52 priated to the department of transportation out of any moneys in the
53 state treasury in the general fund to the credit of the motor vehicle
54 theft and insurance fraud prevention fund, not otherwise appropriated,
55 and made immediately available, for the purpose of carrying out the
56 provisions of paragraph (a) of subdivision 2 of section 846-m of the
A. 2109 10
1 executive law, as amended pursuant to section eighteen of this act.
2 Such moneys shall be payable on the audit and warrant of the comptroller
3 on vouchers certified or approved by the commissioner of transportation
4 in the manner prescribed by law.
5 § 21. Severability clause. If any clause, sentence, paragraph, subdi-
6 vision, section or part contained in any part of this act shall be
7 adjudged by any court of competent jurisdiction to be invalid, such
8 judgment shall not affect, impair, or invalidate the remainder thereof,
9 but shall be confined in its operation to the clause, sentence, para-
10 graph, subdivision, section or part of this act contained in any part
11 thereof directly involved in the controversy in which such judgment
12 shall have been rendered. It is hereby declared to be the intent of the
13 legislature that this act would have been enacted even if such invalid
14 provisions had not been included herein.
15 § 22. This act shall take effect on the ninetieth day after it shall
16 have become a law; provided, however, that if chapter 601 of the laws of
17 2022 shall not have taken effect on or before such date then, section
18 three of this act shall take effect on the same date and in the same
19 manner as such chapter of the laws of 2022 takes effect.
