$4M to Fight Fraud

Over the past few years we have tried to assess the impact of Governor Andrew Cuomo on the insurance business and on the environment that affects the insurance business in New York State. This has not been simple. On the one hand we have what we find to be a tendency toward the legalization of marijuana for medical uses (and then most likely into the same crazy use as Colorado and others). Then, on the other hand, we have a Governor who is proposing tax cuts and appropriating law enforcement money to fight motor vehicle theft and insurance fraud. On the one hand we have a liquidation bureau that needs attention and on the other hand we have a hard working insurance department which distinguished itself during hurricane Sandy and in other ways as well. On the one hand we have a Governor who is quick to move into insurance exchanges and the realm of Obamacare, on the other hand we have a Governor who runs ads that encourage start ups and claim that New York is pro-business. In short, the messages are mixed. Of course, he is running again so the mix may be purposeful. We cannot be but pleased with some of the measures he has undertaken recently and note, with particular interest, his recent $4M appropriation to fight motor vehicle fraud and theft, a long time advocacy in these pages.

The Governor will provide nearly $4 million in grant funding to 29 police departments, district attorneys’ offices and other agencies to combat motor vehicle theft and insurance fraud in the State, stating to the media: “Motor vehicle insurance fraud is a crime that costs New York’s consumers and insurers millions of dollars every year,” Governor Cuomo said. “Under the State’s Motor Vehicle Theft and Insurance Fraud Prevention program, we are empowering local law enforcement agencies with additional resources to combat this problem, enhancing efforts to track down those who break the law and increasing protection for our consumers.” The grant is available through the state’s Motor Vehicle Theft and Insurance Fraud Prevention program, which is overseen by a 12-member board that develops the state’s strategy for combating motor vehicle theft and insurance fraud, in addition to reviewing grant applications and making the grant awards. The state Division of Criminal Justice Services (DCJS) serves as the staff for the board and administers the grant program, which targets the state’s urban centers and is funded through a $10 fee assessed on insurance policies issued for vehicles registered in the state. Recipients will use the grants to target suspected motor vehicle insurance fraud and continue efforts to combat motor vehicle theft, which has been steadily declining in New York. Since 1997, the number of motor vehicle thefts reported in the state has declined 90 percent. In 2012, 18,677 incidents of suspected motor vehicle insurance fraud were reported to the Insurance Frauds Bureau of the state Department of Financial Services (DFS), a 9 percent increase over 2011, when 17,121 suspected incidents of fraud were reported. The 2012 incidents included motor vehicle theft; motor vehicle arson; larceny from a vehicle; motor vehicle fraud claims and no-fault insurance claims, all of which were not legitimate. DCJS Executive Deputy Commissioner Michael C. Green, who chairs the Motor Vehicle Theft and Insurance Fraud Prevention Board, said, “Even as we see the numbers of motor vehicle thefts go down, we must remain vigilant in fighting fraud in motor vehicle insurance. That is an effort that requires a collaborative effort among local law enforcement, state, federal and insurance industry partners to track down wrongdoers and find ways to prevent fraud from happening in the first place.” The following 29 agencies will receive grants and use them in a variety of ways to combat fraud, including: funding either all or a portion of the salaries of assistant district attorneys and investigators specifically assigned to handle motor vehicle theft and insurance fraud cases; funding enhanced enforcement and sting operations; and offering specialized training for prosecutors, police officers and investigators. Statewide Training Grants · New York Anti-Car Theft and Fraud Association (NYACT): $57,000, · The New York State Prosecutor’s Training Institute (NYPTI): $31,900; New York City · New York City Police Department: a total of $289,700 to two specialized units, the Auto Crime Division and Fraudulent Accident Investigation Squad;· Fire Department of New York: $104,900;· Bronx County District Attorney’s Office: $302,500;· Kings County District Attorney’s Office: $227,200;· New York County District Attorney’s Office: $275,000;· Queens County District Attorney’s Office: $568,200;· Richmond County District Attorney’s Office: $77,100; Long Island · Nassau County District Attorney’s Office: $169,100; · Nassau County Police Department: $130,000; · Suffolk County District Attorney’s Office: $315,100 · Suffolk County Police Department: $143,200; Hudson Valley · Westchester County District Attorney’s Office: $300,900; · Yonkers Police Department: $139,400; Capital Region · Albany Police Department: $36,500; · Albany County District Attorney’s Office: $68,100; Central New York · Syracuse Police Department: $26,000; Western New York· Erie County District Attorney’s Office: $120,700; · Monroe County District Attorney’s Office: $125,000; · Niagara County District Attorney’s Office: $152,100; · Buffalo Police Department: $121,000; · Cheektowaga Police Department: $48,000; · Niagara Falls Police Department: $36,500; · Rochester Police Department: $42,200; Monroe County Sheriff ’s Office: $31,200 · Niagara County Sheriff ’s Office: $21,500. The New York State Division of Criminal Justice Services has a variety of responsibilities, including law enforcement training, collection and analysis of statewide crime data; maintenance of criminal history information and fingerprint files; administrative oversight of the state’s DNA databank, in partnership with the New York State Police; administration of federal and state criminal justice funds; support of criminal justice-related agencies across the state; and administration of the state’s Sex Offender Registry. Let’s hope this grant gets the issue the attention it deserves and really helps combat the crooks that drive all of our costs up… In this issue we highlight MSO, one of the most interesting enterprises in the tri-state area that is uniquely positioned for growth. It is our Enterprise of the Year for 2013 and deserves our applause.

Enjoy the Insurance Advocate and have a wonderful and successful New Year.

Thank you.

Steve Acunto