CO SB092

Creates a new crime of insurance fraud under Colorado law (C.R.S. 18-5-211) with five categories of fraudulent conduct involving false or withheld material information in insurance applications, claims, and documents.

Establishes Class 1 misdemeanor penalties for fraudulent insurance applications or renewals and Class 5 felony penalties for fraudulent claims, staged accidents, pre-existing damage claims, and false statements by insurance producers or agents.

Requires insurance producers to report convictions under the new statute to the Commissioner of Insurance within 30 days and mandates license revocation for any convicted insurance producer after notice and hearing.

Expands the definition of "fraudulent insurance act" in the insurance fraud enforcement statute to include violations of the new criminal insurance fraud statute.

Appropriates $21,484 for fiscal year 2015 and $19,640 for fiscal year 2016 to the Department to implement the legislation; effective July 1, 2014.