SB12-110 Summary

• Creates the Insurance Fraud Cash Fund to finance the Colorado Department of Law's investigation and prosecution of insurance fraud, with fees collected from regulated insurance entities.

• Establishes an annual nonrefundable fee (maximum $3,000) paid by insurance entities, with the Commissioner of Insurance setting the amount based on appropriations and the Attorney General's recommendation; implements a tiered fee structure based on prior year direct written premiums.

• Requires the Attorney General to provide annual reports to specified legislative committees detailing full-time employees dedicated to insurance fraud, investigations, convictions, arrests, restitutions, fines, and other enforcement actions, broken down by line of insurance.

• Appropriates $196,677 and 2.0 FTE from the Insurance Fraud Cash Fund to the Department of Law for fiscal year 2012-2013, allocated as $168,096 and 2.0 FTE for personal services and $28,581 for operating expenses of the special prosecutions unit.

• Takes effect July 1, 2012, and relocates existing insurance fraud fee provisions from section 10-3-207.5 to 24-31-104.5.