PIA New York closes staged-accident fraud loophole after years of lobbying

The new statute covers those who orchestrate or invite others into staged schemes, not just those who participate - a gap PIANY had identified as a long-running enforcement problem

PIA New York closes staged-accident fraud loophole after years of lobbying

Insurance News

By Josh Recamara

New York has passed legislation explicitly extending its insurance fraud statutes to cover individuals who hire, request, encourage, orchestrate or invite others to participate in staged auto accident schemes - closing a loophole the Professional Insurance Agents of New York had pushed to close for years. The association secured the win during a 2026 legislative session it has described as unusually productive despite a late state budget that consumed most of Albany's calendar.

PIANY also secured passage of third-party litigation funding regulation requiring greater transparency and fairness in lawsuit lending, and won repeal of a longstanding anti-arson application requirement in New York City that had created ongoing compliance burdens for property owners and agents.

The staged-accident win connects to a broader national push. The Stop Auto Fraud Act of 2026, introduced in Congress this month, targets the same schemes at the federal level and carries backing from the American Property Casualty Insurance Association. New York's state-level legislation closes the enforcement gap in the interim.

The annual meeting

The legislative wins formed the backdrop to PIANY's annual business meeting, held September 9 at the Albany Hilton, where Jason Bartow was re-elected to a second term as president and Ed Chadwick of Jencap Specialty Insurance Services was elected president-elect, with a full slate of vice presidents, treasurer and secretary also elected for 2026-27.

Three insurance professionals received Awards of Distinction at the same meeting.

Leslie Driscoll, owner of Tronilo Driscoll Insurance Agency in Ozone Park, received the Professional Agent of the Year award, given to an independent agent who has demonstrated excellence in insurance marketing and service alongside a personal commitment to professionalism and community contribution. Driscoll has served on PIANY's Education, Sponsorship and Conference committees, and her Ozone Park office serves clients across New York City's five boroughs.

Robert Rovello, regional director at Travelers, received the Company Person of the Year award, given to individuals who build strong working relationships with agents and brokers. Rovello serves on PIANY's MetroRAP Committee and has worked to strengthen ties between Travelers and the association's independent agency members.

Assemblyman Ken Blankenbush received the Distinguished Insurance Service award, presented to individuals with a history of significant contributions to the regional insurance community. Blankenbush has served on the Assembly's insurance committee for years and has maintained a consistently pro-agency record throughout his political career.

Maria Thomas, vice president of brokerage sales and client relations for Friedlander Group, was named Committee Chair of the Year for her work chairing PIANY's 2026 MetroRAP Committee. Thomas co-chairs the Long Island Insurance Community, which has raised more than $7 million for Long Islanders in need over the past 30 years, and previously served as president of the Insurance Professionals Association of Long Island.

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