The bill introduces new procedures for civil actions concerning fraudulent insurance acts, empowering the commissioner of insurance to initiate such actions in district court. The commissioner bears the burden of proof and is authorized to seek civil penalties of up to $10,000 for each act, restitution for damages to insurers or automobile assigned claims plans, and reimbursement for investigation costs incurred by the department. The bill also allows witness testimony via electronic means and eliminates the option for aggrieved insurers or claims plans to join these actions as parties.

In addition, the bill revises laws related to the expungement of criminal records, particularly for individuals applying for licensure as insurance producers or public adjusters. It requires disclosure of expunged records if they relate to fraudulent insurance acts and clarifies the rights of individuals with expunged records, including the ability to claim they have no criminal history and the restoration of firearm possession rights. The bill also updates definitions and procedures regarding expungement, establishes penalties for fraudulent insurance acts, and protects insurers from civil liability when reporting suspected fraud, provided there is no malice or bad faith involved. Certain existing statutes related to fraudulent insurance acts are repealed, with the new provisions set to take effect upon publication.

Statutes affected:
As introduced: 40-2, 21-6614