N.Y. Senate Passes Two Fraud Bills

March 7, 2003

The New York Senate this week passed two bills dealing with insurance fraud, and the insurance industry is now waiting for the
Assembly to take action.

“We’re hopeful the Assembly will move quickly on these Senate bills, or on their own Assembly bills, to pass meaningful legislation that will address these problems that are costing New York consumers millions of dollars,” Gerald Zimmerman, senior counsel for the National Association of Independent Insurers (NAII), said.

The Senate just passed S.B. 683, which deals with no-fault insurance fraud, and S.B. 555, which would criminalize “runners” – who procure clients for attorneys or health care providers with the intent of defrauding an insurer.

The bills have been sent to the Assembly Committees on Codes and
Insurance. Senate President Bruno and Speaker Silver have both stated publicly that Senate and Assembly bills might go to Conference Committee for resolution.

“NAII is wholly supportive of both bills as they both address the abuse and fraud that is rampant in the New York no-fault system,” Zimmerman added.

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