HB323 Summary

• Establishes Chapter 12A in Title 27 defining insurance fraud as knowingly committing fraudulent acts including presenting false information, embezzlement, or failure to decline improper insurance payments, with penalties ranging from Class A misdemeanor to Class B felony depending on loss amount.

• Creates the Insurance Fraud Unit within the Department of Insurance with authority to investigate suspected fraud, issue subpoenas, arrest violators, and make criminal referrals to the Attorney General.

• Establishes the Insurance Fraud Unit Fund through $200 annual assessments on each authorized insurer, with $320,000 appropriated for fiscal years 2012 and 2013.

• Requires fraud warnings on insurance documents and mandatory reporting of suspected fraud to the department, while providing civil immunity to good-faith reporters except when statements are made with actual malice.

• Designates investigation documents as privileged and confidential, with limited exceptions for law enforcement and regulatory agencies, and establishes a six-year statute of limitations for prosecution.