Bill Text: NY A03503 | 2013-2014 | General Assembly | Introduced

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Bill Title: Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-08 - referred to insurance [A03503 Detail]

Download: New_York-2013-A03503-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3503
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 28, 2013
                                      ___________
       Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
         tee on Insurance
       AN ACT to amend the insurance  law,  in  relation  to  compensation  for
         reports of insurance fraud to law enforcement authorities
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The insurance law is amended by adding a new section  405-a
    2  to read as follows:
    3    S  405-A.   COMPENSATION FOR REPORT OF INSURANCE FRAUD TO LAW ENFORCE-
    4  MENT AUTHORITIES. (A)  ANY  PERSON,  OTHER  THAN  PERSONS  DESCRIBED  IN
    5  SUBSECTION  (A)  OF  SECTION  FOUR HUNDRED FIVE OF THIS ARTICLE, WHO HAS
    6  REASON TO BELIEVE THAT A FRAUDULENT INSURANCE ACT PROHIBITED PURSUANT TO
    7  ARTICLE ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW HAS BEEN  COMMITTED  OR
    8  THAT AN INSURANCE TRANSACTION MAY BE FRAUDULENT, OR HAS KNOWLEDGE THAT A
    9  FRAUDULENT  INSURANCE  TRANSACTION  IS ABOUT TO TAKE PLACE, OR HAS TAKEN
   10  PLACE MAY REPORT SUCH ACT OR TRANSACTION AND ANY ADDITIONAL  INFORMATION
   11  RELATIVE TO THE FACTUAL CIRCUMSTANCES OF THE TRANSACTION AND THE PARTIES
   12  INVOLVED  TO THE ATTORNEY GENERAL, DISTRICT ATTORNEY OR INSURANCE FRAUDS
   13  BUREAU.
   14    (B) IF THE INSURANCE FRAUDS BUREAU RECOMMENDS TO THE ATTORNEY  GENERAL
   15  OR DISTRICT ATTORNEY TO COMMENCE AN ACTION OR IF THE ATTORNEY GENERAL OR
   16  DISTRICT ATTORNEY COMMENCES AN ACTION BASED ON INFORMATION PROVIDED BY A
   17  PERSON  PURSUANT  TO  SUBSECTION  (A)  OF THIS SECTION, THEN SUCH PERSON
   18  SHALL BE ENTITLED TO RECEIVE AN AWARD OF FORTY PERCENT OF  THE  PROCEEDS
   19  OF  THE ACTION.   THE ATTORNEY GENERAL OR DISTRICT ATTORNEY SHALL RECOM-
   20  MEND TO THE COURT WHEN A SETTLEMENT IS ENTERED THE AMOUNT OF SUCH AWARD.
   21  THE COURT SHALL BASE SUCH AWARD DECISION ON  THE  EXTENT  TO  WHICH  THE
   22  PERSON SUBSTANTIALLY CONTRIBUTED TO THE PROSECUTION OF THE ACTION.
   23    S  2.  This  act  shall take effect immediately and shall apply to all
   24  reports of fraudulent insurance transactions  made  on  and  after  such
   25  effective date.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07570-01-3