Permits an insurer to rescind or retroactively cancel a policy in circumstances involving an accident staged to defraud an insurer

S 5052 permits insurers to cancel or rescind new auto or commercial insurance policies within 60 days if the initial payment was denied due to fraudulent account use (e.g., fake bank/credit card details), specifically for accidents staged to defraud insurers. It applies to newly issued policies but excludes those required by vehicle law. The bill ensures victims of staged accidents - provided they weren’t involved in the fraud - retain coverage through their own policy or the Motor Vehicle Accident Indemnification Corporation. Insurers must still provide written notice if denying coverage based on this cancellation.