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 can impose civil penalties of up to $10,000 per act, seek restitution for actual damages, and pursue other appropriate relief. The legislation allows for witness testimony via electronic means and eliminates the option for aggrieved insurers or automobile assigned claims plans to be included as parties in these actions. Additionally, it requires that expunged criminal records be disclosed in applications for licensure as an insurance producer or public adjuster if the underlying offense pertains to a fraudulent insurance act.

Moreover, the bill revises the expungement process for criminal records, detailing the conditions for petitioning expungement and specifying which offenses are ineligible, particularly serious crimes like sexual offenses and violent felonies. It establishes a framework for hearings on expungement petitions, including notification requirements and criteria for court consideration. The bill also allows individuals with expunged records to claim they have never been arrested or convicted of a crime and restores their right to possess firearms. It amends the definition of "fraudulent insurance act," sets penalties, and provides immunity for those reporting suspected fraud, while repealing certain existing statutes related to fraudulent insurance acts. Overall, the legislation aims to strengthen enforcement against fraudulent insurance practices and improve the expungement process for individuals with criminal records.

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