MN SF782

Commissioner of Commerce may impose administrative penalties up to $20,000 per intentional insurance fraud act, with penalty amounts tiered based on the value of funds or property wrongfully obtained ($1,000-$20,000 range).

Commissioner may order restitution to fraud victims and may pursue civil action to collect unpaid administrative penalties including attorney fees and interest.

Insurers are prohibited from settling claims within 30 days of an accident unless the claimant receives written disclosure of the right to consult an attorney and separately acknowledges this disclosure in writing.

Persons convicted of insurance fraud under section 609.611 or employment of runners under section 609.612 are barred from enforcing contracts for service payments against insureds or reparation obligors, with eligibility to petition district court for relief after five years.

Provisions become effective the day following final enactment and apply to acts committed on or after that date.