Wednesday, February 1, 2012

Senate Passes Klein Bill to Crack Down on Auto Insurance Fraud

Legislation sponsored by Senator Jeffrey D. Klein (D-Bronx/Westchester) that would impose tougher penalties on those who commit auto insurance fraud passed the State Senate today.
The measure (S.578) would make it a felony to forge an auto insurance card, or certificate of insurance. In New York State, these documents are necessary to obtain government issued documents --  such as a vehicle registration -- that are required to legally operate a motor vehicle.

It's law-abiding New Yorkers who ultimately have to pay the price of auto insurance fraud,” Senator Klein said. “With this commonsense legislation, we will help punish those who seek to game the system, lower auto insurance premiums, and make New York's roads safer.”

Forged insurance cards and documents are often used to fraudulently register cars so that owners may operate them without paying auto insurance premiums. Klein’s bill also makes the selling of 10 or more false insurance cards or documents a felony.

The bill is pending in the Assembly.

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