NY Penal Law § 176.15: Insurance Fraud In The Fourth Degree

by ECL Writer
New York Insurance Fraud Frequently Asked Questions

When someone gives an insurance company false information in order to receive a payment from the insurance company that they otherwise would not have received, it is a white-collar crime known as insurance fraud. Although it’s frequently linked with health insurance, it can also refer to any kind of insurance plan, including life insurance, car insurance, homeowners insurance, workers’ compensation insurance, commercial insurance, and government-financed insurance programs like Medicare or Medicaid. If you intentionally give incorrect information to an insurance company or conceal facts from the insurance company, you would have committed a fraudulent insurance act under New York law.

Examples of insurance fraud include setting fire to property in order to get the insurance money, faking a car theft in order to get the money from the insurance, claiming that something was stolen during a robbery or damaged in an accident when it wasn’t, and overstating the value of stolen or damaged property.

New York criminal law has a number of various offenses related to insurance fraud. The precise insurance fraud offense you will be charged with if you perform an insurance fraud act will depend on a number of different circumstances, including the type of insurance plan involved and the amount of money involved. You shall be charged with insurance fraud in the fourth degree under New York Penal Law 176.15 if you commit an insurance fraud act and as a result, acquire or attempt to acquire property with a value of over $1000 but not over $3000.

Penalties For Insurance Fraud In The Fourth Degree In New York

Insurance fraud is a serious crime that can lead to severe consequences for those who commit it. In New York, insurance fraud in the fourth degree is a Class E felony. The penalty for this crime includes imprisonment for up to 4 years and/or a fine of up to $5,000.

Insurance fraud in the fourth degree involves intentionally providing false information to an insurance company or agent for the purpose of obtaining insurance coverage or benefits that are not entitled to the individual. Examples of insurance fraud in the fourth degree include falsely claiming an injury or illness to obtain health insurance coverage or submitting false information about a vehicle to obtain car insurance coverage.

Individuals who are convicted of insurance fraud in the fourth degree may also face additional consequences, such as a permanent criminal record, difficulty obtaining future insurance coverage, and damage to their reputation.

To avoid facing penalties for insurance fraud in the fourth degree, individuals should always provide truthful and accurate information when applying for insurance coverage. If an individual suspects insurance fraud, they should report it to the appropriate authorities immediately.

Defenses To Insurance Fraud In The Fourth Degree In New York

You would have had to make a false statement regarding a material fact in order to commit insurance fraud. You wouldn’t be charged with insurance fraud if you were misled about a trivial matter that had no bearing on whether or not the insurance payout would have been permitted under the plan or the size of the payout. Additionally, if you did not intend to cheat the insurer, you would not be guilty of insurance fraud. You wouldn’t have engaged in insurance fraud, for instance, if you filed a claim for items lost in a burglary and cited a laptop that was actually taken by a family member before the incident. Similarly, you would not have engaged in insurance fraud if the claim included vehicle damage sustained in an accident and you accidentally included damage that actually happened in an earlier occurrence.

Differences Between Insurance Fraud In The First, Second, Third, And Fourth Degrees In New York

Insurance fraud is a serious crime in New York that carries severe penalties. The severity of the penalty depends on the degree of the fraud committed. In New York, there are four degrees of insurance fraud: first, second, third, and fourth degree. Let’s take a look at the differences between them.

Insurance Fraud in the First Degree

Insurance fraud in the first degree is the most severe form of insurance fraud. It is a Class B felony that carries a penalty of up to 25 years in prison and a fine of up to $50,000. This type of fraud occurs when an individual or group intentionally defrauds an insurer out of more than $1 million. Examples include staging a fake accident or injury or submitting multiple fraudulent insurance claims.

Insurance Fraud in the Second Degree

Insurance fraud in the second degree is a Class C felony that carries a penalty of up to 15 years in prison and a fine of up to $30,000. This type of fraud occurs when an individual or group intentionally defrauds an insurer out of more than $50,000. Examples include submitting a false claim for a car accident or theft of property.

Insurance Fraud in the Third Degree

Insurance fraud in the third degree is a Class D felony that carries a penalty of up to 7 years in prison and a fine of up to $15,000. This type of fraud occurs when an individual or group intentionally defrauds an insurer out of more than $3,000. Examples include inflating the cost of repairs after an accident or submitting a false claim for stolen property.

Insurance Fraud in the Fourth Degree

Insurance fraud in the fourth degree is the least severe form of insurance fraud. It is a Class E felony that carries a penalty of up to 4 years in prison and a fine of up to $5,000. This type of fraud occurs when an individual or group intentionally defrauds an insurer out of more than $1,000. Examples include falsely claiming an injury or illness to obtain health insurance coverage or submitting false information about a vehicle to obtain car insurance coverage.

In summary, insurance fraud in New York is a serious crime that carries severe penalties. The severity of the penalty depends on the degree of the fraud committed, with first-degree fraud being the most severe and fourth-degree fraud being the least severe. It is essential to understand the differences between these degrees of fraud and to avoid committing insurance fraud altogether.

Leave a Comment

This blog is ONLY for informational or educational purposes and DOES NOT substitute professional legal advise. We take no responsibility or credit for what you do with this info.