New York State Cracks Down On Insurance Fraud With New Law

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ALBANY – New York State Governor Andrew Cuomo (D) signed legislation Thursday criminalizing staged motor vehicle accidents.

The law penalizes a person who intentionally causes a motor vehicle collision with the intent to commit a fraudulent insurance act. The measure also makes it a felony offense if someone is seriously hurt in a crash.

The Governor said New York State has zero tolerance for insurance fraud and the new law is a testament to that.

“By signing this legislation into law, we are holding reckless individuals accountable by strengthening penalties for motor vehicle insurance fraud and taking a significant step to make our roads safer for every New Yorker,” explained Governor Cuomo.

Cuomo said the tragedy was the result of an attempt to commit auto insurance fraud by the other driver.

The driver, according to the Governor, planned to file insurance claims and receive a substantial settlement as a result of the crash.

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