On March 23, the New York State Senate passed a bill, sponsored by Sen. James Seward, meant to deter criminals who stage auto accidents in order to collect insurance payouts. A felony conviction now awaits those committing insurance fraud in this manner, a change applauded by the New York Insurance Association (NYIA).
The Insurance Information Institute (I.I.I.) estimated in 2010 that the previous no-fault auto system in fact cost drivers $241 million in 2009. The I.I.I. also claims that fraud and abuse account for 20 percent of the cost of every no-fault claim in the state.