N.Y. Executive Law § 846-j: Legislative findings

§ 846-j. Legislative findings. Motor vehicle theft and motor vehicle

insurance fraud is a major problem in this state costing honest motor

vehicle policyholders billions of dollars annually. As the cost of motor

vehicle insurance continues to rise, this essential coverage has become

less affordable and more out of reach for many New Yorkers. Between

nineteen hundred eighty-five and nineteen hundred ninety-two, New York

has seen over a fifty percent increase in the number of motor vehicle

thefts. Over one hundred sixty thousand motor vehicles are stolen

annually in this state at a cost of over seven hundred million dollars.

Between nineteen hundred eighty-six and nineteen hundred ninety-two, New

York has also seen a one hundred sixty-six percent increase in the

number of reported fraudulent claims; estimates have put the cost to

policyholders for fraudulent activities at ten percent of premiums paid.

The legislature acknowledges a direct relationship between the incidence

of motor vehicle theft, motor vehicle insurance fraud and the cost of

motor vehicle insurance premium rates. The legislature finds, therefor,

that to reduce the overall cost of motor vehicle insurance in this

state, measures must be enacted which specifically address the incidence

of motor vehicle theft and motor vehicle insurance fraud. This

legislation creates the motor vehicle theft and insurance fraud

prevention demonstration program, the goals of which are as follows: to

provide an integrated means to prevent, deter and reduce the incidence

of motor vehicle theft and motor vehicle insurance fraud by developing

and providing funding for demonstration programs which include education

on motor vehicle theft and insurance fraud prevention, programs on motor

vehicle theft and insurance fraud prevention and specialized law

enforcement units to combat motor vehicle theft and insurance fraud.