A 6878: Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.

  
  STATE OF NEW YORK ________________________________________________________________________ 6878 2025-2026 Regular Sessions  IN ASSEMBLY March 18, 2025 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Insurance AN ACT to amend the insurance law, in relation to compensation for reports of insurance fraud to law enforcement authorities The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 405-a 2 to read as follows: 3 § 405-a. Compensation for report of insurance fraud to law enforce- 4 ment authorities. (a) Any person, other than persons described in 5 subsection (a) of section four hundred five of this article, who has 6 reason to believe that a fraudulent insurance act prohibited pursuant to 7 article one hundred seventy-six of the penal law has been committed or 8 that an insurance transaction may be fraudulent, or has knowledge that a 9 fraudulent insurance transaction is about to take place, or has taken 10 place may report such act or transaction and any additional information 11 relative to the factual circumstances of the transaction and the parties 12 involved to the attorney general, district attorney or insurance frauds 13 bureau. 14 (b) If the insurance frauds bureau recommends to the attorney general 15 or district attorney to commence an action or if the attorney general or 16 district attorney commences an action based on information provided by a 17 person pursuant to subsection (a) of this section, then such person 18 shall be entitled to receive an award of forty percent of the proceeds 19 of the action. The attorney general or district attorney shall recom- 20 mend to the court when a settlement is entered the amount of such award. 21 The court shall base such award decision on the extent to which the 22 person substantially contributed to the prosecution of the action. 23 § 2. This act shall take effect immediately and shall apply to all 24 reports of fraudulent insurance transactions made on and after such 25 effective date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10540-01-5