"Two decades ago, the state created a fund with tens of millions of dollars that was supposed to be in a lockbox to crack down on insurance fraud - but instead was funneled simply to law enforcement agencies' general operating funds. As a result only a tiny portion was spent actually fighting fraud."
"Gov. Hochul claims that rampant fraud is driving up the cost of car insurance. But if fighting fraud is the real goal here, why isn't the governor fully exploiting the hundreds of millions of dollars raised for that purpose by the Motor Vehicle Law Enforcement Fee program?"
New York State created a Motor Vehicle Law Enforcement Fee program two decades ago with tens of millions of dollars designated to combat insurance fraud, but the funds were redirected to general law enforcement operating budgets instead. Only a small portion was actually spent fighting fraud. Governor Hochul claims rampant fraud drives up car insurance costs and proposes reforms, yet the state has not fully utilized the hundreds of millions raised specifically for fraud prevention. Investigative reporting reveals the disconnect between Hochul's stated goal of fighting fraud and the state's actual allocation of dedicated fraud-fighting resources.
Read at Streetsblog
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