House Bill 222 Summary

• Incorporates National Association of Insurance Commissioners (NAIC) Insurance Fraud Prevention Model Act language into North Carolina insurance law, including definitions and procedural requirements for investigating fraudulent insurance acts.

• Requires insurance claim forms and applications to display a warning statement that fraudulent claims are criminal offenses subject to fines and imprisonment.

• Mandates insurers implement antifraud initiatives including fraud investigators and submitted antifraud plans to the Commissioner; such plans are protected as proprietary and confidential.

• Increases criminal penalties for insurance fraud: false statements seeking less than $1,000 becomes Class 1 misdemeanor; $1,000-$49,999 becomes Class H felony; $50,000-$99,999 becomes Class E felony; $100,000+ becomes Class C felony, with fines up to $10,000 per violation.

• Modifies rate evasion fraud from Class 3 to Class 1 misdemeanor and creates Class H felony for multi-vehicle auto insurance fraud; creates new Class I felony for fraudulent certificates of insurance valued at $5,000 or more; effective December 1, 2019.