§ 403 — Prohibitions

New York § 403

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 4: Insurance Frauds Prevention

Text

§ 403. Prohibitions. (a) In this article, "fraudulent insurance act"\nmeans insurance fraud as defined in section 176.05 of the penal law; and\nthe terms "personal insurance" and "commercial insurance" shall have the\nsame meaning ascribed to them by section 176.00 of such law.\n (b) For the purpose of section one hundred nine of this chapter, it is\na violation of this chapter for any individual, firm, association or\ncorporation subject to the provisions of this chapter to commit a\nfraudulent insurance act or a fraudulent life settlement act.\n (c) In addition to any criminal liability arising under the provisions\nof this section, the superintendent shall be empowered to levy a civil\npenalty not exceeding five thousand dollars and the amount of the claim\nfor each violation upon any person, including those persons and their\nemployees licensed pursuant to this chapter, who is found to have: (i)\ncommitted a fraudulent insurance act, fraudulent life settlement act or\notherwise violates the provisions of this section; or (ii) knowingly and\nwith intent to defraud files, makes, or assists, solicits or conspires\nwith another to file or make an application for a premium reduction,\npursuant to subsection (a) of section two thousand three hundred\nthirty-six of this chapter, containing any materially false information\nor which, for the purpose of misleading, conceals information concerning\nany fact material thereto.\n (d) All applications for commercial insurance, individual, group or\nblanket accident and health insurance and all claim forms, except as\nprovided for in subsection (e) of this section, shall contain a notice\nin a form approved by the superintendent that clearly states in\nsubstance the following:\n "Any person who knowingly and with intent to defraud any insurance\ncompany or other person files an application for insurance or statement\nof claim containing any materially false information, or conceals for\nthe purpose of misleading, information concerning any fact material\nthereto, commits a fraudulent insurance act, which is a crime, and shall\nalso be subject to a civil penalty not to exceed five thousand dollars\nand the stated value of the claim for each such violation."\n (e) All applications for automobile insurance and all claim forms\nshall contain a notice, in a form approved by the superintendent, that\nclearly states in substance the following:\n "Any person who knowingly makes or knowingly assists, abets, solicits\nor conspires with another to make a false report of the theft,\ndestruction, damage or conversion of any motor vehicle to a law\nenforcement agency, the department of motor vehicles or an insurance\ncompany, commits a fraudulent insurance act, which is a crime, and shall\nalso be subject to a civil penalty not to exceed five thousand dollars\nand the value of the subject motor vehicle or stated claim for each\nviolation."\n (f) In this article, "fraudulent life settlement act" means a fraud as\ndefined in section 176.40 of the penal law.\n