|SAME AS||No Same As|
|Amd §§401, 405 & 2133, Ins L; amd §§165.06, 170.10, 170.15, 176.05 & 176.15, add §175.50, Pen L; add §201-a, amd §§401 & 502, V & T L|
|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; relates to the crime of unauthorized use of a motor vehicle; adds other motor vehicle related crimes as predicate crimes which may increase punishment for unauthorized use of a motor vehicle in the second degree when one is convicted of such crimes within the preceding ten years.|
|01/31/2019||referred to insurance|
|01/08/2020||referred to insurance|
A04032 Committee Votes:Go to top
A04032 Floor Votes:
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4032 SPONSOR: Weprin
TITLE OF BILL: An act to amend the insurance law, the penal law, and the vehicle and traffic law, in relation to insurance fraud and combat- ting the theft of motor vehicles   PURPOSE:: The purpose of this bill is reduce the incidence auto theft and auto insurance fraud including fraud committed by those who misrepresent where they live, operate their automobile, and garage such vehicle for insurance coverage purposes. By misrepresenting where such automobile operators truly live and operate their motor vehicle, these persons obtain inappropriate reductions in their auto insurance premium rates and such costs are shifted to other law abiding automobile owners. By reducing auto theft in New York, that will help to curtain future premi- um rate increases for auto insurance, especially in our urban areas.   SUMMARY OF PROVISIONS:: Section 1: Adds a new Insurance Law section 401(d) to explicitly expand the authority of the Superintendent of Financial Services, under the Insurance Fraud prevention Article, to investigate fraudulent activities with regard to motor vehicle operators who have not secured automobile insurance coverage or who misrepresent the principle place where such automobiles are garaged and operated. Section 2: Amends Insurance Law section 405(a) to authorize the Insur- ance Frauds Bureau to accept reports of suspected fraudulent insurance transactions from any self-insurer with regard to motor vehicle liabil- ity coverage. Section 3: Amends Insurance Law section 2133 to expand the scope of prohibition for any insurance company, insurance agent, broker, or other person who knowingly possesses, transfers or uses a forged insurance identification card to also include other false insurance documents which purports to evince insurance coverage when it is not in effect or is at limits less than those stated on the document. Section 4: Section 1. Amends Section 165.06 of the Penal Law, to include unauthorized use of a motor vehicle in the first degree, grand larceny of a motor vehicle, criminal possession of a motor vehicle, auto strip- ping or illegal possession of a vehicle identification number as predi- cate convictions for the unauthorized use of a vehicle in the second degree. Section 5: Amends Penal Law section 170.10 to add a new (6) to the list of documents that the forgery of is considered to be forgery in the Second Degree. The new document that, if forged, would be forgery in the Second Degree are certificates of insurance or an insurance identifica- tion card. Section 6: Amends Penal Law section 170.15 (Forgery in the First Degree) to include as forgery in the first degree, the fraudulent making, completion, or alteration of 10 or more written instruments, such as certificates of insurance or insurance identification cards: Section 7: Adds a new Penal Law section 175.50 to make it a class E felony to offer a false application for motor vehicle insurance or registration. Under this provision, anyone who submits to the Department of Motor vehicles or to an auto insurer (to obtain an auto insurance policy or insurance identification card) any document that contains a false statement or information with regard to where such applicant resides or where such applicant's motor vehicle is garaged or operated and such document is used directly or indirectly to register an automo- bile shall be a class E felony. Section 8: Amends Penal Law section 176.05 which defines the term "insurance fraud". Under this bill, the term "insurance fraud" is expanded to include any false document used to secure either insurance coverage, file an insurance policy claim, or obtain payment for personal lines insurance coverages (i.e. auto and homeowners insurance). Under current law, only false documents that are used to secure commercial lines policies or money for claims against a commercial lines policy (i.e. general liability or business property policies) are considered to be insurance fraud. This bill expands the types of insurance policies that persons cannot lie about to obtain coverage or claims payment to include personal lines coverages such as motor vehicle liability or homeowners insurance. Section 9: Amends Penal Law section 176.15 to expand the scope of insur- ance fraud in the 4th degree to include the operation of a motor vehicle on a public highway when such operator is insured by a policy issued under the laws of another state, but such person in fact principally lives and garages their vehicle in New York. Section 10: A new Vehicle & Traffic Law section 201-a is added to give law enforcement personnel access to any individual's street address provided to the Department of Motor Vehicles to register a motor vehicle in this state or to obtain a driver's license in this State. This information can be used to ensure that those who submit information to the Department submit accurate information of their residence and where they operate and garage their motor vehicle for auto insurance premium rating purposes. Section 11: Amends Vehicle & Traffic Law section 401(1) to require that all those who file an application to register an automobile in New York must provide their street address where they reside if such person uses a Post Office box for their location of residence. The purpose of this provision is to curtail those that submit fraudulent information on where such applicants truly reside. Section 12: Amends Vehicle & Traffic Law section 502(1) to require that all those who file an application for a driver's license must provide their street address where they reside if such person uses a Post Office box for their location of residence.   JUSTIFICATION:: The purpose of this bill is to address the ever increasing incidence of auto theft and auto insurance fraud in this state. These two illegal activities are related to each other because by reducing the incidence of auto theft, that will reduce the cost of providing auto insurance in the state. More particularly, this bill seeks to address insurance fraud that is perpetrated against those law abiding operators of motor vehicles that accurately and truthfully disclose where they reside and operate and garage their vehicles, regardless of where they live. Some who live in high auto insurance rate areas, such as the New York City metropolitan area, misrepresent where they live, garage and operate their automobiles and fraudulently maintain that they live in low insurance premium rate areas that are either upstate or out of state. There is a prevalence of in-state residents misrepresenting their true place of residence so that they can obtain much lower auto insurance rates. Instead of disclosing their true address in high insurance premi- um places such as, for example, Bronx or Kings Counties, they state that they live in lower insurance premium rated territories such as North Carolina, Pennsylvania, or upstate counties that have much lower inci- dents of motor vehicle theft, car accidents or judgments relegated to motor vehicle accidents. This issue was a topic of a report released in 2006 by the State Commission on Investigations. Since 2006, the commis- sion has sunsetted, however, senator Klein is revising end updating this report. The new Report "Auto Insurance Rate Evasion" was released in February 2011. This bill implements many of the suggested changes contained in that Report. This situation or rate evasion, while artificially lowering the insur- ance rates of those who fraudulently do not disclose their true residen- tial address, substantially increases the insurance premiums paid by those who truthfully disclose their actual place of residence and where they operated and garaged their cars. This bill should bring more equity to those who purchase auto insurance coverages in this state and ensure that everyone pays their fair share for auto insurance coverages that matches their actuarial risk of potential physical damage or theft of their automobiles, risk of personal injury or liability exposure due to judgments obtain in local courts. Section 4 of this bill addresses an inconsistency in the law as it related to auto theft crimes. Under current law, a person may be charged with the crime of unauthorized use of a vehicle in the second degree if he or she has a prior conviction for unauthorized use within a 10 year period of the new offense. However, this enhancement does not apply if a defendant's prior convictions include more serious offenses such as grand larceny, or other vehicle related crimes. This bill corrects this shortcoming by including the offenses of unauthorized use of a vehicle in the first degree, grand larceny, criminal possession, auto stripping, or illegal possession of a vehicle identification number among the pred- icate convictions for charge enhancement.   LEGISLATIVE HISTORY:: 02/06/17 referred to insurance 04/26/17 amend (t) and recommit to insurance 04/26/17 print number 5144a 01/03/18 referred to insurance   FISCAL IMPLICATIONS:: None   EFFECTIVE DATE:: 180 days after it shall have become law, provided however, that sections 4, 5, 6, 7, 8 and 9 shall go into effect on November 1, next succeeding the date on which it shall have become law.
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STATE OF NEW YORK ________________________________________________________________________ 4032 2019-2020 Regular Sessions IN ASSEMBLY January 31, 2019 ___________ Introduced by M. of A. WEPRIN, WOERNER, D'URSO -- read once and referred 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 and combatting the theft of motor vehicles 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 authority pursuant to this chapter 4 to investigate fraudulent activities with regard to individuals that 5 operate motor vehicles with no insurance coverage, and motor vehicle 6 insureds who misrepresent the principal place where insured motor vehi- 7 cles are garaged and operated. Operating motor vehicles without proper 8 insurance in violation of article six of the vehicle and traffic law is 9 a significant danger to the public because drivers are unable to compen- 10 sate individuals for personal injuries, death and property damage they 11 inflict upon others. Furthermore, motor vehicle insureds who misrepre- 12 sent the principal place where such vehicles are garaged and operated 13 improperly shift their high liability exposure costs to other motor 14 vehicle insureds that do not face such high liability risk and insurance 15 premium costs. 16 § 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08180-01-9A. 4032 2 1 fraudulent insurance transaction or fraudulent life settlement act is 2 about to take place, or has taken place shall, within thirty days after 3 determination by such person that the transaction appears to be fraudu- 4 lent, send to the superintendent on a form prescribed by the superinten- 5 dent, the information requested by the form and such additional informa- 6 tion relative to the factual circumstances of the transaction and the 7 parties involved as the superintendent may require. The superintendent 8 shall accept reports of suspected fraudulent insurance transactions or 9 fraudulent life settlement acts from any self insurer, including but not 10 limited to self insurers providing health insurance coverage, those 11 providing motor vehicle liability insurance or those defined in section 12 fifty of the workers' compensation law, and shall treat such reports as 13 any other received pursuant to this section. 14 § 3. Section 2133 of the insurance law, as amended by chapter 77 of 15 the laws of 1994, is amended to read as follows: 16 § 2133. [ Forged] False insurance documents and forged insurance iden- 17 tification cards. Any insurance company, insurance agent, insurance 18 broker or other person who or which, personally or by the action of an 19 employee or agent, knowingly possesses, transfers or uses: (a) any docu- 20 ment which purports to evince insurance coverage when such coverage is 21 not in effect or is in effect at limits less than those stated in the 22 document; or (b) a forged insurance identification card for a motor 23 vehicle, having knowledge, personally or through such employee or agent, 24 of the fact that such insurance identification card, when issued, did 25 not actually represent an owner's policy of liability insurance or a 26 financial security bond issued by an insurance company licensed to do 27 business in this state covering the motor vehicle identified on such 28 card, shall be liable for payment to the people of this state of a civil 29 penalty in a sum not exceeding one thousand dollars for the first such 30 violation and a sum not exceeding five thousand dollars for each subse- 31 quent violation. For the purposes of this section the term "forged 32 insurance identification card" means a written insurance identification 33 card which has been falsely made, completed or altered, and the term 34 "falsely made, completed or altered" shall have the same meaning as set 35 forth in section 170.00 of the penal law. 36 § 4. Section 165.06 of the penal law, as amended by chapter 413 of the 37 laws of 1982, is amended to read as follows: 38 § 165.06 Unauthorized use of a vehicle in the second degree. 39 A person is guilty of unauthorized use of a vehicle in the second 40 degree when: 41 He or she commits the crime of unauthorized use of a vehicle in the 42 third degree as defined in subdivision one of section 165.05 of this 43 article and has been previously convicted of the crime of unauthorized 44 use of a vehicle [ in the third degree] as defined in [ subdivision one of45 section 165.05 or second degree] sections 165.05, 165.06, and 165.08, 46 auto stripping as defined in sections 165.09, 165.10, and 165.11, grand 47 larceny of a motor vehicle as defined in sections 155.30, 155.35, 48 155.40, and 155.42, criminal possession of stolen property as defined in 49 sections 165.40, 165.45, 165.50, 165.52, and 165.54 and the stolen 50 property consisted of a motor vehicle, or illegal possession of a vehi- 51 cle identification number as defined in section 170.70 within the 52 preceding ten years. 53 Unauthorized use of a vehicle in the second degree is a class E felo- 54 ny. 55 § 5. Subdivision 5 of section 170.10 of the penal law is amended and 56 a new subdivision 6 is added to read as follows:A. 4032 3 1 5. A prescription of a duly licensed physician or other person author- 2 ized to issue the same for any drug or any instrument or device used in 3 the taking or administering of drugs for which a prescription is 4 required by law[ .]; or 5 6. A certificate of insurance or an insurance identification card, as 6 defined in section three hundred eleven of the vehicle and traffic law. 7 § 6. Section 170.15 of the penal law is amended to read as follows: 8 § 170.15 Forgery in the first degree. 9 A person is guilty of forgery in the first degree when, with intent to 10 defraud, deceive or injure another, he or she falsely makes, completes 11 or alters [ a]: 12 1. Ten or more written instruments; or 13 2. A written instrument which is or purports to be, or which is calcu- 14 lated to become or to represent if completed: 15 [ 1.] (a) Part of an issue of money, stamps, securities or other valu- 16 able instruments issued by a government or governmental instrumentality; 17 or 18 [ 2.] (b) Part of an issue of stock, bonds or other instruments repres- 19 enting interests in or claims against a corporate or other organization 20 or its property. 21 Forgery in the first degree is a class C felony. 22 § 7. The penal law is amended by adding a new section 175.50 to read 23 as follows: 24 § 175.50 Offering a false application for motor vehicle insurance or 25 registration. 26 A person is guilty of offering a false application for motor vehicle 27 insurance or registration when knowing that any document he or she files 28 with the department of motor vehicles or an insurer providing liability 29 insurance for a motor vehicle contains a false statement or false infor- 30 mation with regard to where he or she resides or where his or her motor 31 vehicle is garaged and operated. 32 Offering a false application for motor vehicle insurance or registra- 33 tion is a class E felony. 34 § 8. Subdivision 1 of section 176.05 of the penal law, as amended by 35 chapter 211 of the laws of 2011, is amended to read as follows: 36 1. any written statement as part of, or in support of, an application 37 for the issuance of, or the rating of a commercial insurance policy, or 38 certificate or evidence of self insurance for commercial or personal 39 insurance or commercial or personal self insurance, or a claim for 40 payment or other benefit pursuant to an insurance policy or self insur- 41 ance program for commercial or personal insurance that he or she knows 42 to: 43 (a) contain materially false information concerning any fact material 44 thereto; or 45 (b) conceal, for the purpose of misleading, information concerning any 46 fact material thereto; or 47 § 9. Section 176.15 of the penal law, as amended by chapter 515 of the 48 laws of 1986, is amended to read as follows: 49 § 176.15 Insurance fraud in the fourth degree. 50 A person is guilty of insurance fraud in the fourth degree when he 51 [ commits] or she: 52 1. commits a fraudulent insurance act and thereby wrongfully takes, 53 obtains or withholds, or attempts to wrongfully take, obtain or withhold 54 property with a value in excess of one thousand dollars; or 55 2. operates a motor vehicle on a public highway, when being the owner 56 of such motor vehicle, he or she knows the motor vehicle is insured by aA. 4032 4 1 policy issued under the laws of another state, when such person main- 2 tains his or her principal residence in this state or such motor vehicle 3 is principally garaged in this state, and such insurance policy was 4 issued upon any written or oral statement by such person that he or she 5 principally resides in such other state or that such motor vehicle is 6 principally garaged in such other state. 7 Insurance fraud in the fourth degree is a class E felony. 8 § 10. The vehicle and traffic law is amended by adding a new section 9 201-a to read as follows: 10 § 201-a. Access to information. The department shall allow law 11 enforcement personnel access to any individual's street address provided 12 pursuant to paragraph b of subdivision one of section four hundred one 13 and subdivision one-a of section five hundred two of this chapter. 14 § 11. Paragraph b of subdivision 1 of section 401 of the vehicle and 15 traffic law, as amended by chapter 222 of the laws of 1996, is amended 16 to read as follows: 17 b. Every owner of a motor vehicle which shall be operated or driven 18 upon the public highways of this state shall, except as otherwise 19 expressly provided, cause to be presented, by mail or otherwise, to the 20 office or a branch office of the commissioner, or to any agent of the 21 commissioner, constituted as provided in this chapter, an application 22 for registration addressed to the commissioner, and on a blank to be 23 prepared under the direction of and furnished by the commissioner for 24 that purpose, containing: (a) a brief description of the motor vehicle 25 to be registered, including the name and factory number of such vehicle, 26 and such other facts as the commissioner shall require; (b) the weight 27 of the vehicle upon which the registration fee is based if the fee is 28 based on weight; (c) the name and residence, including county of the 29 owner of such motor vehicle, provided that if the applicant uses a post 30 office box when providing a residence address, such applicant shall also 31 provide the street address at which he or she resides; (d) provided 32 that, if such motor vehicle is used or to be used as an omnibus, the 33 applicant also shall so certify, and in the case of an omnibus also 34 certify as to the seating capacity, and if the omnibus is to be operated 35 wholly within a municipality pursuant to a franchise other than a fran- 36 chise express or implied in articles of incorporation upon certain 37 streets designated in such franchise, those facts shall also be certi- 38 fied, and a certified copy of such franchise furnished to the commis- 39 sioner; (e) provided, that, if such motor vehicle is an altered livery, 40 the applicant shall so furnish a certified copy of the length of the 41 center panel of such vehicle, provided, however, that the commissioner 42 shall require such proof, as he or she may determine is necessary, in 43 the application for registration and provided further, if the center 44 panel of such vehicle exceeds one hundred inches, the commissioner shall 45 require proof that such vehicle is in compliance with all applicable 46 federal and state motor vehicle safety standards; and (f) such addi- 47 tional facts or evidence as the commissioner may require in connection 48 with the application for registration. Every owner of a trailer shall 49 also make application for the registration thereof in the manner herein 50 provided for an application to register a motor vehicle, but shall 51 contain a statement showing the manufacturer's number or other identifi- 52 cation satisfactory to the commissioner and no number plate for a trail- 53 er issued under the provisions of subdivision three of section four 54 hundred two of this [ chapter] article shall be transferred to or used 55 upon any other trailer than the one for which number plate is issued. 56 The commissioner shall require proof, in the application for registra-A. 4032 5 1 tion, or otherwise, as such commissioner may determine, that the motor 2 vehicle for which registration is applied for is equipped with lights 3 conforming in all respects to the requirements of this chapter, and no 4 motor vehicle shall be registered unless it shall appear by such proofs 5 that such motor vehicle is equipped with proper lights as aforesaid. The 6 said application shall contain or be accompanied by such evidence of the 7 ownership of the motor vehicle described in the application as may be 8 required by the commissioner or his or her agent and which, with respect 9 to new vehicles, shall include, unless otherwise specifically provided 10 by the commissioner, the manufacturer's statement of origin. Applica- 11 tions received by an agent of the commissioner shall be forwarded to the 12 commissioner as he or she shall direct for filing. No application for 13 registration shall be accepted unless the applicant is at least sixteen 14 years of age and has signed such application attesting to the truth and 15 veracity of the facts stated therein. 16 § 12. Section 502 of the vehicle and traffic law is amended by adding 17 a new subdivision 1-a to read as follows: 18 1-a. Provision of street address. In addition to the requirements of 19 subdivision one of this section, each applicant, when providing his or 20 her address, shall provide the street address at which he or she 21 resides. The applicant shall sign his or her application attesting to 22 the truth and veracity of the place of his or her residence. 23 § 13. This act shall take effect on the one hundred eightieth day 24 after it shall have become a law; provided however, that sections four, 25 five, six, seven, eight and nine of this act shall take effect on the 26 first of November next succeeding the date on which it shall have become 27 a law.