NYIA Urges Legislature To Adopt A Zero Tolerance Policy For Fraud At Assembly Hearing

ALBANY, N.Y., April 10, 2014 /PRNewswire-USNewswire/ -- The New York Insurance Association is asking lawmakers to act and put an end to insurance fraud. Auto insurance companies call upon the Legislature to adopt a zero tolerance stance on this lucrative behavior and stop multi-million dollar illegal enterprises that put New York families at personal and financial risk.

In testimony prepared for delivery today at the New York State Assembly Insurance Committee regarding auto insurance, Ellen Melchionni, president of NYIA, outlined a zero tolerance for fraud agenda that would make major strides toward curbing auto insurance fraud.

"Fraud is currently allowed to thrive in the state, making our roadways more dangerous, diminishing the quality of health care, and adding financial burdens to New York families," Melchionni said. "Our healthcare system has been held hostage for too long by corrupt individuals posing as medical professionals. Patient safety needs to be restored. Medical mills that have no interest in treating people seeking medical care need to be shut down. These mills exist solely to bill for treatments that are often never even performed. If treatment is provided it is typically excessive or not necessary—putting those that are treated in harm's way."

The zero tolerance for fraud agenda includes enacting the following bills:

• S3547 and A7989 would make staging an auto accident a felony.
• S3540 would end fraudulent billing from fly-by-night durable medical equipment providers.
• S1959A/A3774A would permit retroactive cancellation of fraudulently obtained auto policies.
• S3545 would require providers to prove a treatment is medically necessary.

"Auto insurance fraud is an easy target for criminals," Melchionni said. "The issue can no longer be ignored. We urge the Legislature to act now and take a zero tolerance stance on fraud. New Yorkers deserve meaningful auto insurance fraud reform that puts the citizens of our state first."

The New York Insurance Association (NYIA®) is a state trade association that has represented the property and casualty insurance industry for more than 130 years. For more information on NYIA, visit www.nyia.org.

SOURCE New York Insurance Association