New York S 6364: Relates to insurance fraud; appropriation

Bill Text

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S06364 Summary:

BILL NOS06364 

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SAME ASNo Same As

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SPONSORHELMING

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COSPNSRBORRELLO, CHAN

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MLTSPNSR

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Add §405-a, Ins L; amd Pen L, generally; amd §846-m, Exec L

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Relates to insurance fraud; provides a provision for compensation to a person that reports insurance fraud to the authorities; establishes crimes of unlawful procurement of clients, patients or customers; aggravated insurance fraud in the second degree; and aggravated insurance fraud in the first degree; provides that this act also increases the penalty for insurance fraud; appropriates $3,100,000 therefor.

Go to top S06364 Actions:

BILL NOS06364 

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03/11/2025REFERRED TO FINANCE

01/07/2026REFERRED TO FINANCE

Go to topS06364 Committee&nbspVotes:

Go to topS06364 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS06364 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6364

 2025-2026 Regular Sessions

 IN SENATE

 March 11, 2025
 ___________

 Introduced by Sen. HELMING -- read twice and ordered printed, and when
 printed to be committed to the Committee on Finance

 AN ACT to amend the insurance law, the penal law and the executive law,
 in relation to insurance fraud; and making an appropriation therefor

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The insurance law is amended by adding a new section 405-a
 2 to read as follows:
 3 § 405-a. Compensation for report of insurance fraud to law enforce-
 4 ment authorities. (a) Any person, other than persons described in
 5 subsection (a) of section four hundred five of this article, who has
 6 reason to believe that a fraudulent insurance act prohibited pursuant to
 7 article one hundred seventy-six of the penal law has been committed or
 8 that an insurance transaction may be fraudulent, or has knowledge that a
 9 fraudulent insurance transaction is about to take place, or has taken
 10 place may report such act or transaction and any additional information
 11 relative to the factual circumstances of the transaction and the parties
 12 involved to the attorney general, district attorney or insurance frauds
 13 bureau.
 14 (b) If the insurance frauds bureau recommends to the attorney general
 15 or district attorney to commence an action or if the attorney general or
 16 district attorney commences an action based on information provided by a
 17 person pursuant to subsection (a) of this section, then such person
 18 shall be entitled to receive an award of at least fifteen percent, but
 19 not more than twenty-five percent of the proceeds of the action or
 20 settlement of the claim up to a maximum of twenty-five thousand dollars.
 21 The attorney general or district attorney shall recommend to the court
 22 when a settlement is entered the amount of such award. The court shall
 23 base such award decision on the extent to which the person substantially
 24 contributed to the prosecution of the action.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD10430-01-5

 S. 6364 2

 1 § 2. Section 176.00 of the penal law is amended by adding three new
 2 subdivisions 6, 7 and 8 to read as follows:
 3 6. "Provider" means an attorney, a health care professional, an owner
 4 or operator of a health care practice or facility, any person who
 5 creates the impression that they, or their practice can provide legal or
 6 health care services, or any person employed or acting on behalf of any
 7 such person.
 8 7. "Public media" means telephone directories, professional directo-
 9 ries, newspapers and other periodicals, radio and television, bill-
 10 boards, and mailed or electronically transmitted written communications
 11 that do not involve in-person contact with a specific prospective
 12 client, patient, or customer.
 13 8. "Runner" means a person who, for a pecuniary benefit, procures or
 14 attempts to procure a client, patient or customer at the direction of,
 15 request of or in cooperation with a provider when such person knows or
 16 has reason to know that the purpose of such provider is to seek to
 17 falsely or fraudulently: obtain benefits under a contract of insurance;
 18