N.Y. Assembly Passes “Watered-down” Fraud Bill

March 19, 2003

The National Association of Independent Insurers does not see many changes following passage by the New York Assembly Insurance Committee and the full Assembly of Committee Chairman Grannis’ fraud bill, which is now headed to the Senate Insurance Committee.

“Although the Assembly bill in its current form no longer calls for mandatory rate rollbacks, it does very little or nothing and will probably make worse the root causes and problems associated with no-fault fraud,” stated NAII Sr. counsel Gerald L.Zimmerman. “The NAII hopes the Senate recognizes the faults in this bill and pushes the Assembly to pass S.B. 683, or have a conference committee to discuss the details of both bills and agree on meaningful reform.”

A.B. 4807 calls for some Regulation 68 time frame rollbacks, establishment of a consumer advocate, elimination of collateral estoppel issues in arbitration and a protracted system for choosing arbitrators.

“NAII is supporting S.B. 683 as a more effective alternative in addressing no-fault fraud,” Zimmerman commented. “This bill squarely tackles the issues at the heart of fraud by criminalizing fraudulent actions – a much more effective response to fraud than that contained in the Grannis bill.”

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