HB 1497 Summary: Transparency in Recoveries Act

• Requires the Office of Insurance Regulation to consider recovery of funds from judgments, settlements, and attorney fees resulting from violations of specified insurance fraud and consumer protection statutes when reviewing motor vehicle insurance rates.

• Requires insurers and rating organizations to report to the Department of Insurance the amounts of funds recovered through claims, settlements, or judgments related to violations of insurance fraud statutes within 30 days of rate changes.

• Specifies that an insured's payment of a deductible or copayment is not a condition for an insurer's payment obligations on claims.

• Requires insurers to report recovered funds to the department when they obtain repayment or refunds of claims paid as a result of violations of specified insurance fraud and related statutes.

• Effective date: July 1, 2023.