Organized crime rings and unscrupulous medical providers and attorneys are causing a marked increase in medical no-fault auto insurance costs in New York state, according to a study by the Insurance Information Institute (III). No-fault (PIP) claim costs are rising faster by far than anywhere else in the country, and are accelerating, the study shows. Last year, claim costs in the state rose by almost one-third, more than twice the 15 percent increase in second-place Florida. In 1998, the increase in New York claim costs was only 4.5 percent. In addition, the average bodily injury claim in New York is 64 percent higher than in any other state, even taking into consideration the higher cost of medical treatment in New York. The number of auto no-fault reports received by the New York Insurance Fraud Bureau has nearly tripled in recent years, from 4,393 in 1995 to 12,372 last year. The National Insurance Crime Bureau reported that last year 90 percent of its referrals in New York involved auto insurance fraud. Another consequence of the rapid increase in PIP claim costs is the explosive growth in the New York Auto Insurance Plan (NYAIP), the state’s market of last resort for high-risk drivers. In 2000, NYAIP applications increased 62 percent over 1999. Through the first nine weeks of 2001, applications were up 277 percent over the same time last year. Examples of common crimes associated with no-fault fraud are staged accidents, billing for fictitious or unnecessary medical treatment and supplies, falsified police reports, and identity theft, according to the report. These fraudulent activities are aimed at creating an accident scenario from which costly and fraudulently contrived medical claim payments can be forced from auto insurers.