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Truck Renting and Leasing Association

The unified voice for truck renting and leasing


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TRALA Opposes NY Bill Hindering Insurance Fraud Investigations

TRALA is concerned with legislation recently introduced in the New York legislature that would make it harder for members to fight insurance fraud in claims involving light-duty vehicles. New York S. 7357 and AB 10268 would both place some heavy administrative and legal requirements on insurance companies and vehicle rental companies when conducting Examinations Under Oath (EUO), which are often scheduled when claimants are suspected of being involved in fraudulent activities.

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S. 7357 and AB 10268 would require that those conducting the EUO provide any and all evidence 10 days prior to the EUO to the claimant and their lawyer, as well as have a peer review performed and provided to the claimant and their lawyer 10 days prior to the EUO. TRALA members feel that being required to share valuable information with those they are questioning for potential insurance fraud would undermine the whole investigation.


In a letter to sponsors of the legislation and committees of jurisdiction, TRALA President and CEO Tom James writes, "Rental companies would rather not give those potentially involved in fraudulent activities any chance to collaborate and change their stories prior to the EUO. Rental companies and the insurance companies they do business with cannot be disadvantaged while they work together to actively fight insurance fraud in New York State."


TRALA's letter states that the industry understands that the goal of S. 7357 / AB 10268 is to ensure fairness, guidance, clarity and consistency in the application of the standards for EUO. At the same time, TRALA members feel that states with no-fault insurance laws, such as New York State, are more conducive to insurance fraud then other states. That is why TRALA members want to work with supporters of this type of legislation that would "ensure fairness in EUOs," so that hopefully both industry and government can work together to achieve their legislative goals, fight insurance fraud in New York State, and keep costs down for all involved.


To see a copy of S. 7357, click 
here. To see a copy of TRALA's letter to the Senate Insurance Committee, click here. For questions, contact TRALA's Joe Sculley at jsculley@trala.org or by calling (703) 299-9120.