The bill introduces new procedures for civil actions concerning fraudulent insurance acts, empowering the commissioner of insurance to initiate these actions in district courts. It establishes that the burden of proof rests with the commissioner, who may impose civil penalties of up to $10,000 for each fraudulent act, seek restitution for actual damages, and request reimbursement for investigation costs. The bill also allows witness testimony via electronic communication and limits the ability of individuals to refuse to testify based on self-incrimination claims, while ensuring that such testimony cannot be used against them in criminal cases, except in instances of perjury or contempt.

Additionally, the bill amends laws related to the expungement of criminal records, particularly for those applying for insurance-related licenses. It requires that expunged records be disclosed if they relate to fraudulent insurance acts and allows individuals with expunged records to claim they have never been arrested or convicted of such crimes in employment or licensing applications. The bill also restores the right to bear arms for individuals with expunged records and restricts the disclosure of these records by custodians. Furthermore, it revises the definition of "fraudulent insurance act," establishes penalties based on the amount involved, mandates antifraud initiatives for insurers, and provides immunity for those reporting suspected fraud, thereby enhancing the framework for combating insurance fraud and improving the expungement process.

Statutes affected:
As introduced: 40-2, 21-6614
As Amended by House Committee: 40-2, 21-6614