Requires that the report due the governor and legislative leaders relating to insurance fraud include the incidence of misrepresentation by insureds of the principal place where motor vehicles are garaged and driven.
Ayes (32): Kruger, Krueger, Stachowski, Oppenheimer, Montgomery, Duane, Parker, Stavisky, Dilan, Stewart-Cousins, Thompson, Breslin, Diaz, Espada, Klein, Perkins, Valesky, DeFrancisco, Johnson O, Volker, Padavan, LaValle, Seward, Saland, Farley, Hannon, Larkin, Nozzolio, Leibell, Maziarz, Marcellino, Robach
BILL NUMBER: S638
TITLE OF BILL :
An act to amend the insurance law, in relation to reporting on motor vehicle insurance fraud
PURPOSE OR GENERAL IDEA OF BILL :
To report on the incidences of misrepresentation by insured as to where the principal place of motor vehicles are garaged an driven will be considered as a fraudulent insurance companies.
SUMMARY OF SPECIFIC PROVISIONS :
Section 405 of the Insurance Law is amended to require a report due the Governor and Legislature to include the incidence of misrepresentation by insured of the principle place where motor vehicles are driven and stored.
Within the metro areas of New York State, automobile insurance is appropriately higher in relation to the more rural, less populated areas of New York State. The reasons for higher rates of automobile insurance in metro areas include higher incidences of accidents, theft, and damage. The practice of misrepresenting the place where an automobile is garaged or driven is a dishonest way of reducing the costs paid for insurance. Residents of areas where insurance costs are higher should not be permitted to pay lower rates for auto insurance based simply on documentation that states their auto is garaged in an area where insurance costs are lower. this act is causing an imbalance in the insurance pool of some regions in less populated areas of New York State, causing rates for less populated regions to be artificially inflated. This legislation seeks to report on these incidences in order to combat these abuses.
LEGISLATIVE HISTORY :
1999-2000-A.4563 Passed Assembly S.5405 of 2001 S.2086 of 2003/2004 S.60 of 2005/2006 S.188 of 2007/2008
EFFECTIVE DATE : This act shall take effect on the one hundred twentieth day after it shall become law.
STATE OF NEW YORK ________________________________________________________________________ 638 2009-2010 Regular Sessions IN SENATE January 12, 2009 ___________Introduced by Sens. LARKIN, LEIBELL -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to reporting on motor vehicle insurance fraud THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 11 of subsection (d) of section 405 of the insur- ance law, as added by chapter 678 of the laws of 1997, is amended to read as follows: (11) an assessment of law enforcement and insurance company activities to detect and curtail the incidence of operating a motor vehicle without proper insurance coverage as required by this chapter AND THE INCIDENCE OF MISREPRESENTATION BY INSUREDS OF THE PRINCIPAL PLACE WHERE MOTOR VEHICLES ARE GARAGED AND DRIVEN. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02316-01-9