The bill introduces new procedures for civil actions concerning fraudulent insurance acts, empowering the commissioner of insurance to initiate such actions in any county where the defendant resides or where the fraudulent act took place. It requires the commissioner to detail the fraud's circumstances with particularity and to prove the case by clear and convincing evidence. If a fraudulent act is confirmed, the court can impose civil penalties of up to $10,000 per act, mandate restitution to the affected insurer or claims plan, and require the payment of investigation costs incurred by the department of insurance. Additionally, the bill allows witness testimony via electronic communication and limits defendants' rights to refuse to testify based on self-incrimination.

Moreover, the bill revises existing laws on the expungement of criminal records, particularly concerning applications for licensure as an insurance producer or public adjuster. It stipulates that expunged records related to fraudulent insurance acts must be disclosed. The legislation also outlines the expungement process, detailing eligibility and ineligibility criteria for expungement. It amends the definition of "fraudulent insurance act," establishes penalties based on the amount involved, and mandates antifraud initiatives for insurers and automobile assigned claims plans. The bill repeals certain existing statutes related to fraudulent insurance acts and clarifies that its provisions apply to all insurance applications and claims, ultimately aiming to enhance enforcement against insurance fraud while addressing the treatment of expunged records.

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