Bill Text: NY A03396 | 2015-2016 | General Assembly | Introduced
Bill Title: 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.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2016-01-06 - referred to insurance [A03396 Detail]
Download: New_York-2015-A03396-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
3396
2015-2016 Regular Sessions
I N A S S E M B L Y
January 22, 2015
___________
Introduced by M. of A. TITONE -- 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 to repeal subdivision
1 of section 502 of the vehicle and traffic law relating to applica-
tions for licenses
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 BROAD AUTHORITY PURSUANT TO THIS
4 CHAPTER TO INVESTIGATE FRAUDULENT ACTIVITIES WITH REGARD TO MOTOR VEHI-
5 CLE DRIVERS THAT OPERATE AUTOMOBILES WITH NO INSURANCE COVERAGE, AND
6 MOTOR VEHICLE INSUREDS WHO MISREPRESENT THE PRINCIPAL PLACE WHERE
7 INSURED MOTOR VEHICLES ARE GARAGED AND OPERATED. OPERATING MOTOR VEHI-
8 CLES WITHOUT PROPER INSURANCE IN VIOLATION OF ARTICLE SIX OF THE VEHICLE
9 AND TRAFFIC LAW IS A SIGNIFICANT DANGER TO THE PUBLIC BECAUSE DRIVERS
10 ARE UNABLE TO COMPENSATE INDIVIDUALS FOR PERSONAL INJURIES, DEATH AND
11 PROPERTY DAMAGE THEY INFLICT UPON OTHERS. FURTHERMORE, MOTOR VEHICLE
12 INSUREDS WHO MISREPRESENT THE PRINCIPAL PLACE WHERE SUCH VEHICLES ARE
13 GARAGED AND OPERATED IMPROPERLY SHIFT THEIR HIGH LIABILITY EXPOSURE
14 COSTS TO OTHER MOTOR VEHICLE INSUREDS THAT DO NOT FACE SUCH HIGH LIABIL-
15 ITY RISK AND INSURANCE PREMIUM COSTS.
16 S 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-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03886-02-5
A. 3396 2
1 action or life settlement act may be fraudulent, or has knowledge that a
2 fraudulent insurance transaction or fraudulent life settlement act is
3 about to take place, or has taken place shall, within thirty days after
4 determination by such person that the transaction appears to be fraudu-
5 lent, send to the superintendent on a form prescribed by the superinten-
6 dent, the information requested by the form and such additional informa-
7 tion relative to the factual circumstances of the transaction and the
8 parties involved as the superintendent may require. The superintendent
9 shall accept reports of suspected fraudulent insurance transactions or
10 fraudulent life settlement acts from any self insurer, including but not
11 limited to self insurers providing health insurance coverage or those
12 defined in section fifty of the workers' compensation law, and shall
13 treat such reports as any other received pursuant to this section. THE
14 SUPERINTENDENT SHALL ACCEPT REPORTS OF SUSPECTED FRAUDULENT INSURANCE
15 TRANSACTIONS FROM ANY SELF INSURER INCLUDING, BUT NOT LIMITED TO, SELF
16 INSURERS PROVIDING HEALTH INSURANCE COVERAGE, THOSE PROVIDING MOTOR
17 VEHICLE LIABILITY INSURANCE OR THOSE DEFINED IN SECTION FIFTY OF THE
18 WORKERS' COMPENSATION LAW, AND SHALL TREAT SUCH REPORTS AS ANY OTHER
19 RECEIVED PURSUANT TO THIS SECTION.
20 S 3. Section 2133 of the insurance law, as amended by chapter 77 of
21 the laws of 1994, is amended to read as follows:
22 S 2133. [Forged] FALSE INSURANCE DOCUMENTS AND FORGED insurance iden-
23 tification cards. Any insurance company, insurance agent, insurance
24 broker or other person who or which, personally or by the action of an
25 employee or agent, KNOWINGLY possesses, transfers or uses: (A) ANY DOCU-
26 MENT WHICH PURPORTS TO EVINCE INSURANCE COVERAGE WHEN SUCH COVERAGE IS
27 NOT IN EFFECT OR IS IN EFFECT AT LIMITS LESS THAN THOSE STATED IN THE
28 DOCUMENT; OR (B) a forged insurance identification card for a motor
29 vehicle, having knowledge, personally or through such employee or agent,
30 of the fact that such insurance identification card, when issued, did
31 not actually represent an owner's policy of liability insurance or a
32 financial security bond issued by an insurance company licensed to do
33 business in this state covering the motor vehicle identified on such
34 card, shall be liable for payment to the people of this state of a civil
35 penalty in a sum not exceeding one thousand dollars for the first such
36 violation and a sum not exceeding five thousand dollars for each subse-
37 quent violation. For the purposes of this section the term "forged
38 insurance identification card" means a written insurance identification
39 card which has been falsely made, completed or altered, and the term
40 "falsely made, completed or altered" shall have the same meaning as set
41 forth in section 170.00 of the penal law.
42 S 4. Subdivision 5 of section 170.10 of the penal law is amended and
43 a new subdivision 6 is added to read as follows:
44 5. A prescription of a duly licensed physician or other person author-
45 ized to issue the same for any drug or any instrument or device used in
46 the taking or administering of drugs for which a prescription is
47 required by law[.]; OR
48 6. A CERTIFICATE OF INSURANCE OR AN INSURANCE IDENTIFICATION CARD, AS
49 DEFINED IN SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
50 S 5. Section 170.15 of the penal law is amended to read as follows:
51 S 170.15 Forgery in the first degree.
52 A person is guilty of forgery in the first degree when, with intent to
53 defraud, deceive or injure another, he OR SHE falsely makes, completes
54 or alters [a]:
55 1. TEN OR MORE WRITTEN INSTRUMENTS; OR
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1 2. A written instrument which is or purports to be, or which is calcu-
2 lated to become or to represent if completed:
3 [1.] (A) Part of an issue of money, stamps, securities or other valu-
4 able instruments issued by a government or governmental instrumentality;
5 or
6 [2.] (B) Part of an issue of stock, bonds or other instruments repres-
7 enting interests in or claims against a corporate or other organization
8 or its property.
9 Forgery in the first degree is a class C felony.
10 S 6. The penal law is amended by adding a new section 170.48 to read
11 as follows:
12 S 170.48 OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR
13 REGISTRATION.
14 A PERSON IS GUILTY OF OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE
15 INSURANCE OR REGISTRATION WHEN KNOWING THAT ANY DOCUMENT HE OR SHE FILES
16 WITH THE DEPARTMENT OF MOTOR VEHICLES OR AN INSURER PROVIDING LIABILITY
17 INSURANCE FOR A MOTOR VEHICLE CONTAINS A FALSE STATEMENT OR FALSE INFOR-
18 MATION WITH REGARD TO WHERE HE OR SHE RESIDES OR WHERE HIS OR HER MOTOR
19 VEHICLE IS GARAGED AND OPERATED.
20 OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR REGISTRA-
21 TION IS A CLASS E FELONY.
22 S 7. Subdivision 1 of section 176.05 of the penal law, as amended by
23 chapter 211 of the laws of 2011, is amended to read as follows:
24 1. any written statement as part of, or in support of, an application
25 for the issuance of, or the rating of a commercial insurance policy, or
26 certificate or evidence of self insurance for commercial OR PERSONAL
27 insurance or commercial OR PERSONAL self insurance, or a claim for
28 payment or other benefit pursuant to an insurance policy or self insur-
29 ance program for commercial or personal insurance that he or she knows
30 to:
31 (a) contain materially false information concerning any fact material
32 thereto; or
33 (b) conceal, for the purpose of misleading, information concerning any
34 fact material thereto; or
35 S 8. Section 176.15 of the penal law, as amended by chapter 515 of the
36 laws of 1986, is amended to read as follows:
37 S 176.15 Insurance fraud in the fourth degree.
38 A person is guilty of insurance fraud in the fourth degree when he
39 [commits] OR SHE:
40 1. COMMITS a fraudulent insurance act and thereby wrongfully takes,
41 obtains or withholds, or attempts to wrongfully take, obtain or withhold
42 property with a value in excess of one thousand dollars; OR
43 2. OPERATES A MOTOR VEHICLE ON A PUBLIC HIGHWAY, WHEN SUCH MOTOR VEHI-
44 CLE IS INSURED BY A POLICY ISSUED UNDER THE LAWS OF ANOTHER STATE, WHEN
45 SUCH PERSON MAINTAINS HIS OR HER PRINCIPAL RESIDENCE IN THIS STATE OR
46 SUCH MOTOR VEHICLE IS PRINCIPALLY GARAGED IN THIS STATE, AND SUCH INSUR-
47 ANCE POLICY WAS ISSUED UPON ANY WRITTEN OR ORAL STATEMENT BY SUCH PERSON
48 THAT HE OR SHE PRINCIPALLY RESIDES IN SUCH OTHER STATE OR THAT SUCH
49 MOTOR VEHICLE IS PRINCIPALLY GARAGED IN SUCH OTHER STATE.
50 Insurance fraud in the fourth degree is a class E felony.
51 S 9. The vehicle and traffic law is amended by adding a new section
52 201-a to read as follows:
53 S 201-A. ACCESS TO INFORMATION. THE DEPARTMENT SHALL ALLOW LAW
54 ENFORCEMENT PERSONNEL ACCESS TO ANY INDIVIDUAL'S STREET ADDRESS PROVIDED
55 PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF SECTION FOUR HUNDRED ONE
56 AND SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
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1 S 10. Paragraph b of subdivision 1 of section 401 of the vehicle and
2 traffic law, as amended by chapter 222 of the laws of 1996, is amended
3 to read as follows:
4 b. Every owner of a motor vehicle which shall be operated or driven
5 upon the public highways of this state shall, except as otherwise
6 expressly provided, cause to be presented, by mail or otherwise, to the
7 office or a branch office of the commissioner, or to any agent of the
8 commissioner, constituted as provided in this chapter, an application
9 for registration addressed to the commissioner, and on a blank to be
10 prepared under the direction of and furnished by the commissioner for
11 that purpose, containing: (a) a brief description of the motor vehicle
12 to be registered, including the name and factory number of such vehicle,
13 and such other facts as the commissioner shall require; (b) the weight
14 of the vehicle upon which the registration fee is based if the fee is
15 based on weight; (c) the name and residence, including county of the
16 owner of such motor vehicle, PROVIDED THAT IF THE APPLICANT USES A POST
17 OFFICE BOX WHEN PROVIDING A RESIDENCE ADDRESS, SUCH APPLICANT SHALL ALSO
18 PROVIDE THE STREET ADDRESS AT WHICH HE OR SHE RESIDES; (d) provided
19 that, if such motor vehicle is used or to be used as an omnibus, the
20 applicant also shall so certify, and in the case of an omnibus also
21 certify as to the seating capacity, and if the omnibus is to be operated
22 wholly within a municipality pursuant to a franchise other than a fran-
23 chise express or implied in articles of incorporation upon certain
24 streets designated in such franchise, those facts shall also be certi-
25 fied, and a certified copy of such franchise furnished to the commis-
26 sioner; (e) provided, that, if such motor vehicle is an altered livery,
27 the applicant shall so furnish a certified copy of the length of the
28 center panel of such vehicle, provided, however, that the commissioner
29 shall require such proof, as he OR SHE may determine is necessary, in
30 the application for registration and provided further, if the center
31 panel of such vehicle exceeds one hundred inches, the commissioner shall
32 require proof that such vehicle is in compliance with all applicable
33 federal and state motor vehicle safety standards; and (f) such addi-
34 tional facts or evidence as the commissioner may require in connection
35 with the application for registration. Every owner of a trailer shall
36 also make application for the registration thereof in the manner herein
37 provided for an application to register a motor vehicle, but shall
38 contain a statement showing the manufacturer's number or other identifi-
39 cation satisfactory to the commissioner and no number plate for a trail-
40 er issued under the provisions of subdivision three of section four
41 hundred two of this [chapter] ARTICLE shall be transferred to or used
42 upon any other trailer than the one for which number plate is issued.
43 The commissioner shall require proof, in the application for registra-
44 tion, or otherwise, as such commissioner may determine, that the motor
45 vehicle for which registration is applied for is equipped with lights
46 conforming in all respects to the requirements of this chapter, and no
47 motor vehicle shall be registered unless it shall appear by such proofs
48 that such motor vehicle is equipped with proper lights as aforesaid. The
49 said application shall contain or be accompanied by such evidence of the
50 ownership of the motor vehicle described in the application as may be
51 required by the commissioner or his OR HER agent and which, with respect
52 to new vehicles, shall include, unless otherwise specifically provided
53 by the commissioner, the manufacturer's statement of origin. Applica-
54 tions received by an agent of the commissioner shall be forwarded to the
55 commissioner as he OR SHE shall direct for filing. No application for
56 registration shall be accepted unless the applicant is at least sixteen
A. 3396 5
1 years of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH AND
2 VERACITY OF THE FACTS STATED THEREIN.
3 S 11. Subdivision 1 of section 502 of the vehicle and traffic law, as
4 separately amended by chapters 465 and 487 of the laws of 2012, is
5 REPEALED and a new subdivision 1 is added to read as follows:
6 1. APPLICATION FOR LICENSE. APPLICATION FOR A DRIVER'S LICENSE SHALL
7 BE MADE TO THE COMMISSIONER. THE FEE PRESCRIBED BY LAW MAY BE SUBMITTED
8 WITH SUCH APPLICATION. THE APPLICANT SHALL FURNISH SUCH PROOF OF IDENTI-
9 TY, AGE, ADDRESS OF HIS OR HER RESIDENCE AND FITNESS AS MAY BE REQUIRED
10 BY THE COMMISSIONER. WHEN PROVIDING HIS OR HER ADDRESS OF RESIDENCE,
11 THE APPLICANT SHALL PROVIDE THE STREET ADDRESS AT WHICH HE OR SHE
12 RESIDES. EACH APPLICANT SHALL SIGN HIS OR HER APPLICATION ATTESTING TO
13 THE TRUTH AND VERACITY OF THE FACTS STATED THEREIN. THE COMMISSIONER MAY
14 ALSO PROVIDE THAT THE APPLICATION PROCEDURE SHALL INCLUDE THE TAKING OF
15 A PHOTO IMAGE OR IMAGES OF THE APPLICANT IN ACCORDANCE WITH RULES AND
16 REGULATIONS PRESCRIBED BY THE COMMISSIONER. IN ADDITION, THE COMMISSION-
17 ER ALSO SHALL REQUIRE THAT THE APPLICANT PROVIDE HIS OR HER SOCIAL SECU-
18 RITY NUMBER AND SHALL PROVIDE SPACE ON THE APPLICATION SO THAT THE
19 APPLICANT MAY REGISTER IN THE NEW YORK STATE ORGAN AND TISSUE DONOR
20 REGISTRY UNDER SECTION FORTY-THREE HUNDRED TEN OF THE PUBLIC HEALTH LAW
21 WITH THE FOLLOWING STATED ON THE APPLICATION IN CLEAR AND CONSPICUOUS
22 TYPE:
23 "YOU MUST FILL OUT THE FOLLOWING SECTION: WOULD YOU LIKE TO BE ADDED
24 TO THE DONATE LIFE REGISTRY? CHECK BOX FOR 'YES' OR 'SKIP THIS QUES-
25 TION'."
26 THE COMMISSIONER OF THE DEPARTMENT OF HEALTH SHALL NOT MAINTAIN
27 RECORDS OF ANY PERSON WHO CHECKS "SKIP THIS QUESTION". FAILURE TO CHECK
28 A BOX SHALL NOT IMPAIR THE VALIDITY OF AN APPLICATION, AND FAILURE TO
29 CHECK "YES" OR CHECKING "SKIP THIS QUESTION" SHALL NOT BE CONSTRUED TO
30 IMPLY A WISH NOT TO DONATE. IN THE CASE OF AN APPLICANT UNDER EIGHTEEN
31 YEARS OF AGE, CHECKING "YES" SHALL NOT CONSTITUTE CONSENT TO MAKE AN
32 ANATOMICAL GIFT OR REGISTRATION IN THE DONATE LIFE REGISTRY. WHERE AN
33 APPLICANT HAS PREVIOUSLY CONSENTED TO MAKE AN ANATOMICAL GIFT OR REGIS-
34 TERED IN THE DONATE LIFE REGISTRY, CHECKING "SKIP THIS QUESTION" OR
35 FAILING TO CHECK A BOX SHALL NOT IMPAIR THAT CONSENT OR REGISTRATION.
36 THE COMMISSIONER SHALL PROVIDE SPACE ON THE APPLICATION SO THAT THE
37 APPLICANT MAY REQUEST NOTATION UPON SUCH LICENSE THAT HE OR SHE IS A
38 VETERAN OF THE UNITED STATES ARMED FORCES. IN ADDITION, AN APPLICANT
39 FOR A COMMERCIAL DRIVER'S LICENSE WHO WILL OPERATE A COMMERCIAL MOTOR
40 VEHICLE IN INTERSTATE COMMERCE SHALL CERTIFY THAT SUCH APPLICANT MEETS
41 THE REQUIREMENTS TO OPERATE A COMMERCIAL MOTOR VEHICLE, AS SET FORTH IN
42 PUBLIC LAW 99-570, TITLE XII, AND TITLE 49 OF THE CODE OF FEDERAL REGU-
43 LATIONS, AND ALL REGULATIONS PROMULGATED BY THE UNITED STATES SECRETARY
44 OF TRANSPORTATION UNDER THE HAZARDOUS MATERIALS TRANSPORTATION ACT. IN
45 ADDITION, AN APPLICANT FOR A COMMERCIAL DRIVER'S LICENSE SHALL SUBMIT A
46 MEDICAL CERTIFICATE AT SUCH INTERVALS AS REQUIRED BY THE FEDERAL MOTOR
47 CARRIER SAFETY IMPROVEMENT ACT OF 1999 AND PART 383.71(H) OF TITLE 49 OF
48 THE CODE OF FEDERAL REGULATIONS RELATING TO MEDICAL CERTIFICATION AND IN
49 A MANNER PRESCRIBED BY THE COMMISSIONER. FOR PURPOSES OF THIS SECTION
50 AND SECTIONS FIVE HUNDRED THREE, FIVE HUNDRED TEN-A, AND FIVE HUNDRED
51 TEN-AA OF THIS TITLE, THE TERMS "MEDICAL CERTIFICATE" AND "MEDICAL
52 CERTIFICATION" SHALL MEAN A FORM SUBSTANTIALLY IN COMPLIANCE WITH THE
53 FORM SET FORTH IN PART 391.43(H) OF TITLE 49 OF THE CODE OF FEDERAL
54 REGULATIONS. UPON A DETERMINATION THAT THE HOLDER OF A COMMERCIAL DRIV-
55 ER'S LICENSE HAS MADE ANY FALSE STATEMENT, WITH RESPECT TO THE APPLICA-
56 TION FOR SUCH LICENSE, THE COMMISSIONER SHALL REVOKE SUCH LICENSE.
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1 S 12. Subdivision 1 of section 502 of the vehicle and traffic law, as
2 added by section eleven of this act, is amended to read as follows:
3 1. Application for license. Application for a driver's license shall
4 be made to the commissioner. The fee prescribed by law may be submitted
5 with such application. The applicant shall furnish such proof of identi-
6 ty, age, address of his or her residence and fitness as may be required
7 by the commissioner. When providing his or her address of residence,
8 the applicant shall provide the street address at which he or she
9 resides. Each applicant shall sign his or her application attesting to
10 the truth and veracity of the facts stated therein. The commissioner may
11 also provide that the application procedure shall include the taking of
12 a photo image or images of the applicant in accordance with rules and
13 regulations prescribed by the commissioner. In addition, the commission-
14 er also shall require that the applicant provide his or her social secu-
15 rity number and [shall] provide space on the application so that the
16 applicant may register in the New York state organ and tissue donor
17 registry under section forty-three hundred ten of the public health law
18 [with the following stated on the application in clear and conspicuous
19 type:
20 "You must fill out the following section: Would you like to be added
21 to the Donate Life Registry? Check box for 'yes' or 'skip this ques-
22 tion'."
23 The commissioner of the department of health shall not maintain
24 records of any person who checks "skip this question". Failure to check
25 a box shall not impair the validity of an application, and failure to
26 check "yes" or checking "skip this question" shall not be construed to
27 imply a wish not to donate. In the case of an applicant under eighteen
28 years of age, checking "yes" shall not constitute consent to make an
29 anatomical gift or registration in the donate life registry. Where an
30 applicant has previously consented to make an anatomical gift or regis-
31 tered in the donate life registry, checking "skip this question" or
32 failing to check a box shall not impair that consent or registration.
33 The commissioner shall provide]; AND space on the application so that
34 the applicant may request notation upon such license that he or she is a
35 veteran of the United States armed forces. In addition, an applicant
36 for a commercial driver's license who will operate a commercial motor
37 vehicle in interstate commerce shall certify that such applicant meets
38 the requirements to operate a commercial motor vehicle, as set forth in
39 public law 99-570, title XII, and title 49 of the code of federal regu-
40 lations, and all regulations promulgated by the United States secretary
41 of transportation under the hazardous materials transportation act. In
42 addition, an applicant for a commercial driver's license shall submit a
43 medical certificate at such intervals as required by the federal motor
44 carrier safety improvement act of 1999 and Part 383.71(h) of title 49 of
45 the code of federal regulations relating to medical certification and in
46 a manner prescribed by the commissioner. For purposes of this section
47 and sections five hundred three, five hundred ten-a, and five hundred
48 ten-aa of this title, the terms "medical certificate" and "medical
49 certification" shall mean a form substantially in compliance with the
50 form set forth in Part 391.43(h) of title 49 of the code of federal
51 regulations. Upon a determination that the holder of a commercial driv-
52 er's license has made any false statement, with respect to the applica-
53 tion for such license, the commissioner shall revoke such license.
54 S 13. This act shall take effect on the one hundred eightieth day
55 after it shall have become a law, provided however, that:
56 (a) section eleven of this act shall take effect October 3, 2016;
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1 (b) sections four, five, six, seven and eight of this act shall take
2 effect on the first of November next succeeding the date on which it
3 shall have become a law.
