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Bill > S06364


NY S06364

NY S06364
Relates to insurance fraud; provides a provision for compensation to a person that reports insurance fraud to the authorities; establishes crimes of unlawful procurement of clients, patients or customers; aggravated insurance fraud in the second degree; and aggravated insurance fraud in the first degree; provides that this act also increases the penalty for insurance fraud; appropriates $3,100,000 therefor.


summary

Introduced
03/11/2025
In Committee
03/11/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the insurance law, the penal law and the executive law, in relation to insurance fraud; and making an appropriation therefor

AI Summary

This bill strengthens insurance fraud laws by introducing several key provisions. It establishes a new compensation program where individuals who report insurance fraud to law enforcement can receive 15-25% of the proceeds from successful prosecutions, up to $25,000, based on their substantial contribution to the case. The bill defines new terms like "provider" and "runner" to clarify who can be involved in fraudulent insurance activities, and creates a new crime of "unlawful procurement of clients, patients, or customers" which makes it a felony to act as or hire a "runner" who recruits clients for fraudulent insurance purposes. The legislation also modifies existing insurance fraud statutes by lowering the monetary thresholds for different degrees of insurance fraud, effectively making it easier to prosecute such crimes. Additionally, the bill creates new categories of aggravated insurance fraud for repeat offenders, with penalties ranging from class D to class B felonies depending on the severity and frequency of the offenses. The bill also appropriates $3.1 million to support efforts to detect and prosecute insurance fraud, with a specific focus on district attorneys' efforts to identify and prosecute fraudulent activities.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

REFERRED TO FINANCE (on 03/11/2025)

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