Section 5102 - Definitions

1 Analyses of this statute by attorneys

  1. Scheme to Defraud Insurance Carriers May Leave 'Runners' Walking Behind Bars

    Marshall DenneheyJune 5, 2023

    A recently introduced bill in the New York State Assembly will hold accident scene runners as criminal defendants for unlawful procurement of clients, patients, and customers.Runners are most common in staged and intentional accidents.According to the Department of Financial Services, no-fault fraud reports accounted for 93% of all fraud reports received in 2022 and 90% of all health care fraud reports received since 2018.New York Insurance Law § 5102 and the corresponding no-fault regulations require automobile insurance carriers to provide a statutory mandatory minimum coverage of $50,000 for “first party benefits” for “basic economic loss” due to personal injury arising out of the use or operation of a motor vehicle. No-fault law provides for prompt payment for medical treatment, so claimants do not need to file personal injury lawsuits to be reimbursed. Under no-fault law, patients may assign their right to reimbursement from an insurance carrier to other parties, including health care providers.Due to the extremely high volume of claims that must be processed within strict timeframes, the no-fault industry is primed for health care provider fraud. Often, health care providers are assisted by “runners,” who procure patients.Significantly, a recently introduced Bill in the New York State Assembly will hold accident scene runners as criminal defendants for unlawful procurement of clients, patients, and customers. The proposed Bil