Bill > A06878

This bill amends the New York insurance law to create a new provision that encourages individuals to report insurance fraud by offering a significant financial incentive. Specifically, any person (except those already involved in legal enforcement) who has reason to believe that a fraudulent insurance act has been committed or is about to occur can report such information to the attorney general, district attorney, or insurance frauds bureau. If the report leads to a legal action and the person is deemed to have substantially contributed to the prosecution, they will be entitled to receive 40% of the proceeds from the action. The law defines a fraudulent insurance transaction by referencing existing penal law statutes about insurance fraud. The bill is designed to incentivize whistleblowers and provide a monetary reward for individuals who help uncover and prosecute insurance fraud, which can help protect consumers and insurance companies from financial losses. The act takes effect immediately and applies to all fraud reports made on or after its effective date.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A6878