Legislative Memo

Ken Pokalsky
Vice President of Government Affairs
T 518.465.7511


S.6357-B Budget Part T



No-Fault Automobile Insurance Reform


S.6357-B Budget Part T


March 19, 2014


The Business Council supports the Executive Budget proposal to enhance consumer protection through no-fault automobile insurance fraud reform. This proposal gives the Superintendent of DFS the power to prohibit health providers from requesting payment for health services rendered after a determination of fraudulent activity on behalf of the provider and to levy fines of up to $10,000 per fraudulent offense. This provision also gives the Superintendent the authority to examine and audit health providers at any time.

We also support the Senate's modifications to the executive budget proposal providing for the retroactive cancellation of fraudulent auto insurance policies, and increased felony level criminal penalties for fraudulent no fault insurance claims.

This proposal will help crack down on auto fraud by giving the DFS the ability to look closer at individuals posing as health professionals while restoring the safety needs of patients.

Auto insurance fraud makes our roadways less safe, undermines quality health service, and increases costs to consumers. These measures will help make the no-fault system operate more effectively.

For these reasons we strongly urge the legislature to enact S.6357-B Part T