WPCNR’s Adam In Albany. By District 89 Assemblyperson Adam T. Bradley. March 14, 2003:The Assembly passed new legislation this week to help protect consumers from run-away auto insurance rates (A.4807-A). The bill, which I voted for, cracks down on auto insurance fraud – a crime that costs Westchester and New York drivers more than $1 billion a year.
New York’s auto insurance rates have soared over the past several years because scam artists are exploiting the state’s no-fault insurance law. The Assembly’s legislation cracks down on individuals who engage in fraudulent schemes and holds insurers more accountable for their rates.
To help ensure that consumers receive a savings, the legislation requires the state Insurance Department superintendent to review rate change requests by insurers for private passenger auto policies. Insurers who do not reduce their no-fault premium rates as a result of savings from anti-fraud measures must provide the state with a detailed explanation justifying their inability to lower rates.
These reforms will go a long way towards helping reduce the cost of auto insurance to consumers, as well as send a strong message that insurance fraud won’t be tolerated in New York. This legislation creates felony level penalties for “runners” – individuals who recruit clients and facilitators to stage accidents for the purpose of scamming insurers. It also establishes the Office of Public Insurance Consumer Advocate, an independent state body, to safeguard auto and health insurance consumers.
In addition, the Assembly’s legislation would provide for stricter accounting of medical costs incurred under the no-fault program by requiring a 30-day notice of claim for initial medical treatment and a 60-day notice of proof of claim.
Right now, New York ranks third highest in auto insurance rates, and unfortunately we’re heading in the wrong direction. We have a real chance at having the worst rates in the nation if something isn’t done. This legislation would help provide New York’s working families with immediate relief from skyrocketing auto insurance costs. I urge the Senate and governor to work with the Assembly to do what’s right for motorists and enact this money-saving legislation.