The New York State Senate Insurance Committee plans to hold a hearing Feb. 9 on New York’s auto insurance fraud problem.
Fraud investigators and the insurance department are expected to testify on how staged accidents are spreading around the state.
The committee also said it expected to “revive two reform bills the Senate passed last year but which died in the Assembly. SB 555 would make it a felony to recruit members of staged-accident rings [the long-sought ‘runners’ bill].
“SB 683 would let insurers delay paying suspicious claims for 30 days while they investigate. The bill also would give the insurance department greater power to investigate medical clinics and other providers.”
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