New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENT
Subtitle A - Governor's Office
Chapter I - Executive Orders
Part 5 - Executive Orders (George E. Pataki)
Section 5.109 - Executive order no. 109: establishing a special prosecutor to investigate and prosecute criminal acts relating to fraudulent motor vehicle insurance claims

Current through Register Vol. 46, No. 52, December 24, 2024

WHEREAS, the Comprehensive Motor Vehicle Insurance Reparations Act (commonly known as the "No-Fault law") was enacted by the New York State Legislature over twenty-five years ago to ensure that every accident victim will be compensated for economic loss, promptly and without regard to fault;

WHEREAS, this No-Fault system has succeeded in stabilizing the costs of automobile insurance in this State while benefitting consumers by combining a package of first-party benefits for economic losses resulting from injury and prompt payment of such benefits, in return for allowing suits for non-economic damages only for specified serious injuries;

WHEREAS, recently there has been a dramatic increase in the cost of some motor vehicle insurance coverages, and much of this increase is attributable to fraudulent and abusive motor vehicle insurance claims practices. In fact, it has been alleged that motor vehicle insurance fraud may cost the average New York consumer hundreds of dollars per year in higher insurance premiums;

WHEREAS, fraudulent and abusive claims activity harms consumers, health care providers and insurers by increasing insurance costs, slowing claims processing and payment, and creating an increasingly adversarial relationship among affected parties;

WHEREAS, law enforcement agencies and District Attorneys have made significant efforts to combat this growing motor vehicle insurance fraud problem and have acted with diligence to prosecute insurance cases in their jurisdictions. The investigation, development and prosecution of such cases require significant resources, however, and existing resources are being stretched in these efforts to respond to this fast-growing problem;

WHEREAS, it is necessary to bolster and augment the important work being done by our State's law enforcement and prosecutorial communities by directing additional prosecutorial and investigative resources in areas where fraudulent motor vehicle insurance activity is prevalent;

WHEREAS, the benefit to be derived from such efforts can be increased further by fostering greater coordination among prosecutors and law enforcement officials in their battle against motor vehicle insurance fraud.

NOW, THEREFORE, I, GEORGE E. PATAKI, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and Laws of the State of New York, and particularly by subdivision eight of section 63 of the Executive Law, and in accordance with the statute and law in such cases made and provided, find it to be in the public interest to require that the Attorney General inquire, in the circumstances and the manner hereafter provided, into matters concerning public peace, public safety and public justice with respect to criminal acts relating to fraudulent motor vehicle insurance claims.