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.
BILL NUMBER: S638A
TITLE OF BILL :
An act to amend the insurance law, in relation to reporting on motor vehicle insurance fraud
To report on the incidence of misrepresentation by insureds as to where the principal places of motor vehicles are garaged and driven, and that such misrepresentation will be considered a fraudulent insurance act.
SUMMARY OF PROVISIONS :
Section 405 of the insurance law is amended to require a report due to the Governor and Legislature which includes the incidence of misrepresentation by insureds of the principal 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 incidents 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 automobile insurance based simply on documentation that states their motor vehicle 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 incidents in order to combat these abuses.
LEGISLATIVE HISTORY :
2008: S.188 Advanced to Third Reading/Passed Assembly 2006: S.60 Referred to Insurance/Passed Assembly 2004: S.2086 Referred to Insurance/Passed Assembly
FISCAL IMPLICATIONS :
EFFECTIVE DATE : This act shall take effect on the one hundred twentieth day after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 638--A Cal. No. 111 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 -- recommitted to the Committee on Insurance in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee and committed to the Committee on Finance -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report 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 amended by chapter 499 of the laws of 2009, 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. LBD02316-03-0