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NY A03321
Bill
Status
1/27/2025
Primary Sponsor
Kenneth Blankenbush
Click for details
AI Summary
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Establishes certification requirements for managed care organizations providing medical services to auto insurance claimants, requiring quality standards, adequate provider networks, utilization review procedures, and dispute resolution mechanisms
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Requires initial notice of first party benefit claims to be filed within 30 days of injury, and proof of medical service costs to be submitted within 45 days of treatment; extends insurer payment deadline from 30 to 45 days
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Creates financial rewards of 15-25% (up to $25,000) for individuals who report insurance fraud to the attorney general, district attorney, or insurance frauds bureau when their information leads to prosecution
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Lowers monetary thresholds for insurance fraud felony charges: fourth degree reduced from $1,000 to $500, third degree from $3,000 to $1,500, second degree from $50,000 to $25,000, and first degree from $1 million to $500,000
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Criminalizes the use of "runners" who procure clients for attorneys or healthcare providers for fraudulent insurance claims as a class E felony; appropriates $3,100,000 to support district attorney fraud prosecution efforts
Legislative Description
Enacts the New York automobile insurance fraud and premium reduction act; provides that this act is aimed at reducing insurance fraud and thus lowering the cost of insurance premiums; provides a provision for compensation to a person that reports insurance fraud to the authorities; further provides that this act also increases the penalty for insurance fraud; appropriates $3,100,000 therefor.
Last Action
referred to insurance
1/7/2026