Mangano Joins With New Yorkers Stand Against Insurance Fraud To Call For Passage Of "Fraud Tax Bill"

Rampant Auto Insurance Fraud Leading To Higher Premiums

Nassau County Executive Edward P. Mangano joined with members of New Yorkers Stand Against Insurance Fraud (NYSAIF) today to call for passage of the “Fraud Tax Bill,” which would increase penalties for organized criminals driving up automobile insurance costs by taking advantage of New York’s no fault laws. According to the Insurance Information Institute, an industry think tank, Nassau residents pay 130% more for auto insurance on average than drivers across the nation largely due to the “no fault insurance” fraud crisis.

The legislation, (S-2816/A-6286) sponsored by New York State Senators Jack Martins, James Seward, and Marty Golden (R) in the Senate and New York State Assemblyman Joseph Morelle (D) in the Assembly, increases penalties on criminals who cheat the no-fault system and decertifies medical providers who commit insurance fraud. No-fault fraud cost New Yorkers more than $200 million in 2010 alone and nearly $1 billion over the last five years.

“Auto insurance fraud has been a goldmine for organized criminals, forcing New York drivers to eat the costs,” said County Executive Ed Mangano. “We must send a clear message to criminals that the gig is up and we will not tolerate this ring of criminal activity. I join the members of NYSAIF along with law enforcement officials across the state in urging the passage of this important legislation before session is concluded.”

“Between rising gas prices and increases in insurance premiums, the cost of driving has become untenable for many New Yorkers,” said NYSAIF Executive Director Rafe Lieber. “Gas prices we might not have control over, but we can crack down on criminals abusing New York’s no fault insurance laws. If Albany is serious about helping New York become more affordable, then we urge the legislature to pass this legislation immediately.”

“Honest drivers should not have to pay the price for those looking to cheat the system,” said Senator Jack Martins (R-Mineola). “This bill includes reforms that will give insurers the tools they need to fight fraud and abuse. The end result will be less expensive auto insurance for our drivers. We need this bill passed and signed. It's time to get tough on fraud and abuse.”