SIU Today Spring 2021 - 19

Legislative Update
By Matthew J. Smith, Esq.,

And They're Off! 2021 Looks to
be a Busy Legislative Year

We've all grown weary of COVID over the past year, and legislators
are no exception. With elections in the rearview mirror, the
arrival of vaccines and the hope of some sense of normalcy ahead,
legislators are returning to state capitals ready to tackle a wave of
proposed anti-fraud legislation. Proposals include new initiatives
and re-filed bills, both good and bad, that were sidelined in 2020
due to the pandemic. The Coalition, in partnership with IASIU
and our other anti-fraud allies, is prepared for the busy legislative
season in 2021.
Some 40 anti-fraud bills have already been filed or pre-filed in
nearly half of the states - with more to follow quickly in the
coming weeks. Legislators also appear willing to take on serious
issues impacting both insurers and consumers. Let's take a look
at what is ahead.

NEW YORK IS LEADING THE WAY...
Big states always have a major impact due to their sheer numbers,
but also because they often lead the way with important legislative
initiatives. Both are true when it comes to New York where more
fraud-related bills have been filed than any other state. Among those
bills is a proposal to require insurers to report non-identifiable
data on auto insurance claims to the superintendent of insurance
by April 1st of each year. The superintendent would then be
mandated to report the findings to legislative leaders and release
the report to the public by no later than July 1st.
Like many other states, data privacy is also key on the minds of
Empire State leaders. This Senate bill would allow consumers to
file a private right of action for a breach releasing their identifying
information such as their social security number, driver's license
number, bank account number, credit or debit card number,
personal identification number, automated or electronic signature,
unique biometric data, account passwords or other information
which could be used to access their financial accounts or to obtain
goods and services. Another pending Assembly bill would expand
the state's criminal laws relating to identity theft to include medical
and health insurance information.
Joining those bills in Albany's legislative hopper is a Coalition
supported measure to require workers compensation audits.

The audits would occur at least every two years and employers
who knowingly understate or conceal payroll information, or
who knowingly misrepresent or conceal employee duties would
be subject to prosecution for committing insurance fraud. After
working with the governor's office on a pre-pandemic proposal
last year, legislators are pursuing an important " whistleblower "
law on behalf of those who come forward with information about
insurance fraud. If enacted, persons providing information to the
attorney general, a district attorney or the insurance frauds bureau
concerning a fraudulent insurance transaction may be entitled to
an award of 40 percent of any recovery relating to the reported
fraudulent action.

WELCOME TO FLORIDA...AMERICA'S FRAUD
CAPITAL
When it comes to insurance fraud, and legislation to fight it,
Florida is never far from anyone's mind. Sunshine State legislators
will return to Tallahassee on March 2nd for their annual 60-day
legislative flurry. Pre-filed are bills attempting to yet again throwout the state's no-fault auto insurance system and replace it with
a new liability-based program. Anyone living or traveling to
Florida and seeing the barrage of advertising for personal injury
claims can figure out pretty quickly a problem is occurring in the
state. Unfortunately, agreeing on the solution is not as easy. Past
efforts to eliminate PIP insurance have failed with even insurers
backing-out of reform efforts. When it comes to Florida anything
can happen; right now the chances for any meaningful change in
2021 appear to be questionable at best.
More likely to pass is a bill to curb the widespread abuses that
stem from Florida having a zero-deductible for auto glass claims.
A bill filed in the Senate includes important consumer and insurer
safeguards such as prohibiting repair shops and their employees
from offering anything of value to a customer in exchange for
making an insurance claim for motor vehicle glass replacement.
It also requires all assignments of benefits to include a repair cost
estimate and consumer warning language about giving the repair
shop the right to file a lawsuit without notifying the vehicle owner
first. Also expected to gain wide support is what should be a
non-controversial bill making it a crime to knowingly and willfully

SPRING 2021 | SIU TODAY

https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A01519&term=2021&Summary=Y&Text=Y https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A01519&term=2021&Summary=Y&Text=Y https://www.flsenate.gov/Session/Bill/2021/54/BillText/Filed/HTML https://www.flsenate.gov/Session/Bill/2021/54/BillText/Filed/HTML https://www.nysenate.gov/legislation/bills/2021/s3384 https://www.nysenate.gov/legislation/bills/2021/s3384 https://www.nysenate.gov/legislation/bills/2021/s3003 https://www.nysenate.gov/legislation/bills/2021/s3003 https://www.flsenate.gov/Session/Bill/2021/906/BillText/Filed/HTML https://www.flsenate.gov/Session/Bill/2021/906/BillText/Filed/HTML https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A00036&term=2021&Summary=Y&Text=Y https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A00036&term=2021&Summary=Y&Text=Y https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A00308&term=2021&Summary=Y&Text=Y

SIU Today Spring 2021

Table of Contents for the Digital Edition of SIU Today Spring 2021