State Senator James Seward announced on Monday the state Senate has passed legislation he sponsors that combats auto insurance fraud.
Seward’s bill, know as Alice’s Law, targets criminals who stage auto accidents in attempts to profit from insurance claims. The bill was prompted by the 2003 death of Alice Ross, a 71-year old grandmother who was killed as a result of a staged auto accident.
The measure would establish tough penalties by creating a new crime of staging a motor vehicle accident. In a statement, Seward says no-fault insurance fraud costs New Yorkers an estimated $400 Million per year in higher insurance premiums.