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By Michael Diegel
It’s been gratifying to see that a number of states have moved quickly on an anti-fraud agenda during the early days of the 1997 legislative sessions. Here are some of the highlights – both successes and failures.
Arkansas
The governor has been sent a bill that would create a fraud bureau within the department of insurance. The bill broadly defines insurance fraud and requires certain anti-fraud initiatives by insurers, including fraud warnings on applications and claims forms.
Oklahoma
The legislature is once more considering a bill that uses the Coalition’s language to broadly define insurance fraud and create a fraud bureau within the insurance department. A similar bill died in the 1996 legislative session.
Oregon
With the assistance of the Coalition, the insurance department is sponsoring legislation that uses the Coalition’s definition of insurance fraud, requires insurers to report suspected fraud and grants broad immunity, including insurer-to-insurer communication.
South Dakota
The Senate approved a bill creating a crime of insurance fraud and establishing a fraud bureau within the insurance division. The legislation is modeled after the Nebraska fraud law enacted a couple of years ago. However, this bill’s prospects of being enacted aren’t good.
The legislature is considering a bill that would create an insurance fraud bureau in the insurance department. The legislation, drafted by the department with Coalition assistance, also requires anti-fraud plans by insurers that would include hiring or contracting for fraud investigators, placing fraud warnings on claims and applications forms and reporting licensees to their appropriate license boards upon conviction of insurance fraud.
Hawaii
The State legislature is considering several anti-fraud bills, including a version of the Coalition’s model act and a bill creating a fraud bureau in the insurance department.
Montana and Georgia
Bills have been introduced in both State legislatures that would make it a crime to commit insurance fraud against senior citizens. The Montana bill, sponsored by the state’s auditor, died in committee.
Nevada
The Coalition is still working closely with its partners in hopes of moving an anti-fraud agenda during the 1997 session. Also, the legislature is considering a bill sponsored by the attorney general that increases the penalty for the illegal use of employee leasing firms to a felony.
Wyoming and Virginia
The legislatures of both states failed to enact anti-fraud legislation during their short sessions in 1997. The Wyoming effort faltered when the bill didn’t come up for committee consideration in time to assure that both chambers would approve the bill prior to adjournment. The sponsor of the Wyoming bill is already looking toward 1998 to move an anti-fraud agenda. The Virginia effort is disheartening since the Coalition worked closely with its partners and legislators, only to see the bill die in a House committee after it was passed unanimously by the State Senate.
Other bills of interest:
New Jersey
The legislature is considering a bill that would void an automobile insurance policy if the insured knowingly provided false or misleading statements on the application.
South Carolina
A bill in the legislature would extend the State grand jury’s jurisdiction to include the crime of insurance fraud.
Washington
The legislature appears to be on the verge of passing a bill exempting life and health carriers from the anti-fraud plan provisions of the state’s insurance fraud law. An identical bill failed in 1996, but it appears likely to pass this year. The Coalition is opposed to this backward step in fraud fighting.
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