Senate Bill No. 145
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced January 14, 2004; referred to the Committee on
Banking and Insurance; the Judiciary; and then to the Committee
on Finance.]
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A BILL to amend the code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §33-22-2a; to amend
said code by adding thereto a new section, designated
§33-23-2a; to amend said code by adding thereto a new section,
designated §33-24-4b; to amend said code by adding thereto a
new section, designated §33-25-6a; to amend said code by
adding thereto a new section, designated §33-25A-24b; to amend
and reenact §33-41-1, §33-41-2 and §33-41-3 of said code; and
to amend said code by adding thereto twelve new sections,
designated §33-41-4, §33-41-5, §33-41-6, §33-41-7, §33-41-8,
§33-41-9, §33-41-10, §33-41-11, §33-41-12, §33-41-13,
§33-41-14 and §33-41-15, all relating to insurance fraud;
subjecting farmers' mutual insurance companies, fraternal benefit societies, certain hospital, medical, dental and
health services corporations, health care corporations and
health maintenance organizations to insurance fraud
provisions; defining terms; establishing an insurance fraud
unit within agency of insurance commissioner; authorizing
promulgation of rules and requiring filing of annual reports;
establishing powers and duties of the unit; outlining
investigative powers and procedures; providing confidentiality
and immunity of fraud unit operations; prohibiting insurance
fraud; establishing criminal penalties and fines; authorizing
prosecution for fraudulent acts; authorizing special
prosecutors; specifying duties of insurers; authorizing
funding by assessment of insurers; establishing the West
Virginia insurance fraud prevention act; defining legislative
intent and terms; creating misdemeanor and felony offenses for
the commission of fraudulent acts; and creating penalties,
exceptions and immunities.
Be it enacted by the Legislature of West Virginia:
That the code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §33-22-2a; that said
code be amended by adding thereto a new section, designated
§33-23-2a; that said code be amended by adding thereto a new
section, designated §33-24-4b; that said code be amended by adding thereto a new section, designated §33-25-6a; that said code be
amended by adding thereto a new section, designated §33-25A-24b;
that §33-41-1, §33-41-2 and §33-41-3 of said code be amended and
reenacted; and that said code be amended by adding thereto twelve
new sections, designated §33-41-4, §33-41-5, §33-41-6, §33-41-7,
§33-41-8, §33-41-9, §33-41-10, §33-41-11, §33-41-12, §33-41-13,
§33-41-14 and §33-41-15, all to read as follows:
ARTICLE 22. FARMERS' MUTUAL FIRE INSURANCE COMPANIES.
§33-22-2a. Applicability of insurance fraud prevention act.
Notwithstanding any provision of this code to the contrary,
article forty-one of this chapter is applicable to farmers' mutual
fire insurance companies.
ARTICLE 23. FRATERNAL BENEFIT SOCIETIES.
§33-23-2a. Applicability of insurance fraud prevention act.
Notwithstanding any provision of this code to the contrary,
article forty-one of this chapter is applicable to fraternal
benefit societies.
ARTICLE 24. HOSPITAL SERVICE CORPORATIONS, MEDICAL SERVICE
CORPORATIONS, DENTAL SERVICE CORPORATIONS AND
HEALTH SERVICE CORPORATIONS.
§33-24-4b. Applicability of insurance fraud prevention act.
Notwithstanding any provision of this code to the contrary,
article forty-one of this chapter is applicable to hospital service corporations, medical service corporations, dental service
corporations and health service corporations.
ARTICLE 25. HEALTH CARE CORPORATIONS.
§33-25-6a. Applicability of insurance fraud prevention act.
Notwithstanding any provision of this code to the contrary,
article forty-one of this chapter is applicable to health care
corporations.
ARTICLE 25A. HEALTH MAINTENANCE ORGANIZATION ACT.
§33-25A-24b. Applicability of insurance fraud prevention act.
Notwithstanding any provision of this code to the contrary,
article forty-one of this chapter is applicable to health
maintenance organizations.
ARTICLE 41. INSURANCE FRAUD PREVENTION ACT.
§33-41-1. Short title; legislative findings and purpose.
(a) This article may be cited as the "West Virginia Insurance
Fraud Prevention Act."
(b) The Legislature finds that the business of insurance
involves many transactions that have potential for fraud, abuse and
other illegal activities. This article is intended to permit full
utilization of the expertise of the commissioner to investigate and
discover fraudulent insurance acts more effectively, halt
fraudulent insurance acts and assist and receive assistance from
state, local and federal law enforcement and regulatory agencies in enforcing laws prohibiting fraudulent insurance acts.
§33-41-2. Definitions.
As used in this article:
(a) "Benefits" mean money payments, goods, services or any
other thing of value.
(b) "Business of insurance" means the writing of insurance or
the reinsuring of risks by an insurer, including acts necessary or
incidental to writing insurance or reinsuring risks and the
activities of persons who act as or are officers, directors, agents
or employees of insurers, or who are other persons authorized to
act on their behalf.
(c) "Claim" means an application or request for payment or
benefits provided under an insurance policy.
(d) "Commissioner" means the commissioner of insurance, the
commissioner's designees or the office of the insurance
commissioner.
(e) "Financial loss" includes, but is not limited to, loss of
earnings, out-of-pocket and other expenses, repair and replacement
costs and claims payments made by any insurer, provider or person.
(f) "Fraudulent insurance act" means an act or omission
committed by a person who, knowingly and with intent to injure,
defraud, or deceive any person commits, or conceals any material
information concerning, one or more of the following:
(1) Presenting, causing to be presented or preparing with
knowledge or belief that it will be presented to or by an insurer,
a reinsurer, broker or its agent, false information as part of, in
support of or concerning a fact material to one or more of the
following:
(A) An application for the issuance or renewal of an insurance
policy or reinsurance contract;
(B) The rating of an insurance policy or reinsurance contract;
(C) A claim for payment or benefit pursuant to an insurance
policy or reinsurance contract;
(D) Premiums paid on an insurance policy or reinsurance
contract;
(E) Payments made in accordance with the terms of an insurance
policy or reinsurance contract;
(F) A document filed with the commissioner or the chief
insurance regulatory official of another jurisdiction;
(G) The financial condition of an insurer or reinsurer;
(H) The formation, acquisition, merger, reconsolidation,
dissolution or withdrawal from one or more lines of insurance or
reinsurance in all or part of this state by an insurer or
reinsurer;
(I) The issuance of written evidence of insurance; or
(J) The reinstatement of an insurance policy;
(2) Solicitation or acceptance of new or renewal insurance
risks on behalf of an insurer, reinsurer or other person engaged in
the business of insurance by a person who knows or should know that
the insurer or other person responsible for the risk is insolvent
at the time of the transaction;
(3) Removal, concealment, alteration or destruction of the
assets or records of an insurer, reinsurer or other person engaged
in the business of insurance;
(4) Willful embezzlement, abstracting, purloining or
conversion of moneys, funds, premiums, credits or other property of
an insurer, reinsurer or person engaged in the business of
insurance;
(5) Transaction of the business of insurance in violation of
laws requiring a license, certificate of authority or other legal
authority for the transaction of the business of insurance;
(6) Soliciting, offering or receiving any remuneration,
including any kickback, rebate or bribe, directly or indirectly,
with the intent of causing an expenditure of moneys from any person
which would not otherwise be payable under an applicable insurance
policy; or
(7) Attempting to commit, aiding or abetting in the commission
of, or conspiracy to commit the acts or omissions specified in this
subsection.
(g) "Health care provider" means any person, firm or
corporation rendering health care services or goods.
(h) "Insurance" means a contract or arrangement in which one
undertakes to:
(1) Pay or indemnify another as to loss from certain
contingencies called "risks," including through reinsurance;
(2) Pay or grant a specified amount or determinable benefit to
another in connection with ascertainable risk contingencies;
(3) Pay an annuity to another; or
(4) Act as surety.
(i) "Insurer" means a person entering into arrangements or
contracts of insurance or reinsurance. Insurer includes, but is
not limited to, any domestic or foreign stock company, mutual
company, mutual protective association, farmers' mutual fire
companies, fraternal benefit society, reciprocal or interinsurance
exchange, nonprofit medical care corporation, nonprofit health care
corporation, nonprofit hospital service association, nonprofit
dental care corporation, health maintenance organization, captive
insurance company, risk retention group or other insurer,
regardless of the type of coverage written, benefits provided or
guarantees made by each. A person is an insurer regardless of
whether the person is acting in violation of laws requiring a
certificate of authority or regardless of whether the person denies being an insurer.
(j) "Insurance representative" means any person, firm or
corporation acting on an insurer's behalf, including, but not
limited to, any agent, adjuster, officer, director, employee or
investigator.
(k) "NAIC" means the national association of insurance
commissioners.
(l) "Person" means an individual, a corporation, a limited
liability company, a partnership, an association, a joint stock
company, a trust, trustees, an unincorporated organization, or any
similar business entity or any combination of the foregoing.
"Person" also includes hospital service corporations, medical
service corporations and dental service corporations as defined in
article twenty-four of this chapter, health care corporations as
defined in article twenty-five of this chapter, or a health
maintenance organization organized pursuant to article twenty-five-
a of this chapter.
(m) "Policy" means an individual or group policy, group
certificate, contract or arrangement of insurance or reinsurance
affecting the rights of a resident of this state or bearing a
reasonable relation to this state, regardless of whether delivered
or issued for delivery in this state.
(n) "Reinsurance" means a contract, binder of coverage (including placement slip) or arrangement under which an insurer
procures insurance for itself in another insurer as to all or part
of an insurance risk of the originating insurer.
(o) "Statement" means any written or oral representation made
to any person, insurer or authorized agency. A statement includes,
but is not limited to, any oral report or representation; any
insurance application, policy, notice or statement; any proof of
loss, bill of lading, receipt for payment, invoice, account,
estimate of property damages, or other evidence of loss, injury or
expense; any bill for services, diagnosis, prescription, hospital
or doctor record, X ray, test result or other evidence of
treatment, services or expense; and any application, report,
actuarial study, rate request or other document submitted or
required to be submitted to any authorized agency. A statement
also includes any of the above recorded by electronic or other
media.
(p) "Unit" means the insurance fraud unit established pursuant
to the provisions of this article acting collectively or by its
duly authorized representatives.
§33-41-3. Fraudulent insurance acts, interference and
participation of convicted felons prohibited.
(a) A person may not commit a fraudulent insurance act.
(b) A person may not knowingly or intentionally interfere with the enforcement of the provisions of this article or investigations
of suspected or actual violations of this article.
(c) (1) A person convicted of a felony involving dishonesty or
breach of trust may not participate in the business of insurance.
(2) A person in the business of insurance may not knowingly or
intentionally permit a person convicted of a felony involving
dishonesty or breach of trust to participate in the business of
insurance.
§33-41-4. Fraud warning required.
(a) Claim forms and applications for insurance, regardless of
the form of transmission, shall contain the following statement or
a substantially similar statement:
"Any person who knowingly presents a false or fraudulent claim
for payment of a loss or benefit or knowingly presents false
information in an application for insurance is guilty of a crime
and may be subject to fines and confinement in prison."
(b) The lack of a statement as required in subsection (a) of
this section does not constitute a defense in any prosecution for
a fraudulent insurance act.
(c) Policies issued by nonadmitted insurers pursuant to
article twelve-c of this chapter shall contain a statement
disclosing the status of the insurer to do business in the state
where the policy is delivered or issued for delivery or the state where coverage is in force. The requirement of this subsection may
be satisfied by a disclosure specifically required by section five,
article twelve-c of this chapter; section nine, article thirty-two
of this chapter; and section eighteen, article thirty-two of this
chapter.
(d) The requirements of this section shall not apply to
reinsurance claim forms or reinsurance applications.
§33-41-5. Investigative, prosecution and authority of the
commissioner.
(a) The commissioner may investigate suspected fraudulent
insurance acts and persons engaged in the business of insurance.
(b) If the commissioner finds that the prosecuting attorney of
the county in which the violation occurred is, for some reason,
unable or unwilling to take appropriate action, the commissioner
may petition the appropriate circuit court for the appointment of
a special prosecutor in accordance with the provisions of section
eight, article seven, chapter seven of this code. An attorney
appointed as a special prosecutor shall have the same authority as
a county prosecutor to investigate and prosecute criminal
violations of this article. The commissioner may employ attorneys
to assist in the prosecution of violations of this article, or to
act as special prosecutor if the attorney is appointed to act in
accordance with the provisions of section eight, article seven, chapter seven of this code.
(c) Funds allocated for insurance fraud prevention may be
dispersed by the commissioner, at his or her discretion, for the
purpose of insurance fraud enforcement as identified in this
article.
(d) It shall be the duty of the West Virginia state police,
municipal police departments and the sheriffs of the counties in
West Virginia to assist fraud investigators in making arrests and
the duty of the prosecuting attorneys of the several counties to
prosecute all violations of this article.
(e) The commissioner is hereby authorized to apply for a
temporary or permanent injunction in any appropriate circuit court
of this state seeking to enjoin and restrain a person from
violating or continuing to violate the provisions of this article
or rule promulgated thereunder, notwithstanding the existence of
other remedies at law. The circuit court shall have jurisdiction
of the proceeding and have the power to make and enter an order or
judgment awarding temporary or permanent injunctive relief
restraining any person from violating or continuing to violate any
provision of this article or rule promulgated thereunder as in its
judgment is proper.
(f) The commissioner is hereby authorized to conduct public
outreach, education, and awareness programs on the costs of insurance fraud to the public.
§33-41-6. Mandatory reporting of fraudulent insurance acts.
(a) A person engaged in the business of insurance having
knowledge or a reasonable belief that a fraudulent insurance act is
being, will be or has been committed shall provide to the
commissioner the information required by, and in a manner
prescribed by, the commissioner.
(b) Any other person having knowledge or a reasonable belief
that a fraudulent insurance act is being, will be or has been
committed may provide to the commissioner the information required
by, and in a manner prescribed by, the commissioner.
§33-41-7. Immunity from liability.
(a) There shall be no civil liability imposed on and no cause
of action shall arise from a person's furnishing information
concerning suspected, anticipated or completed fraudulent insurance
acts, if the information is provided to or received from:
(1) The commissioner or the commissioner's employees, agents
or representatives;
(2) Federal, state, or local law-enforcement or regulatory
officials or their employees, agents or representatives;
(3) A person involved in the prevention and detection of
fraudulent insurance acts or that person's agents, employees or
representatives; or
(4) The national association of insurance commissioners or its
employees, agents or representatives.
(b) Subsection (a) of this section shall not apply to
statements made with actual malice. In an action brought against
a person for filing a report or furnishing other information
concerning a fraudulent insurance act, the party bringing the
action shall plead specifically any allegation that subsection (a)
of this section does not apply because the person filing the report
or furnishing the information did so with actual malice.
(c) This section does not abrogate or modify common law or
statutory privileges or immunities.
§33-41-8. Confidentiality.
(a) Documents, materials or other information in the
possession or control of the office of the insurance commissioner
that are provided pursuant to section six of this article or
obtained by the commissioner in an investigation of suspected or
actual fraudulent insurance acts shall be confidential by law and
privileged, shall not be subject to article one, chapter
twenty-nine-b of the West Virginia code, one thousand nine hundred
thirty-one, as amended, are not open to public inspection, shall
not be subject to subpoena, and shall not be subject to discovery
or admissible in evidence in any private civil action. However,
the commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal
action brought as a part of the commissioner's official duties.
The commissioner is authorized to use the documents, materials or
other information if they are required for evidence in criminal
proceedings or other action by the state.
(b) Neither the commissioner nor any person who receives
documents, materials or other information while acting under the
authority of the commissioner may be permitted or required to
testify in any private civil action concerning any confidential
documents, materials or information subject to subsection (a) of
this section.
(c) In order to assist in the performance of the
commissioner's duties, the commissioner:
(1) May share documents, materials or other information,
including the confidential and privileged documents, materials or
information subject to subsection (a) of this section with other
state, federal and international regulatory agencies, with the
national association of insurance commissioners and its affiliates
and subsidiaries, and with local, state, federal and international
law-enforcement authorities, provided that the recipient agrees to
maintain the confidentiality and privileged status of the document,
material or other information;
(2) May receive documents, materials or information, including otherwise confidential and privileged documents, materials or
information, from the national association of insurance
commissioners and its affiliates and subsidiaries, and from
regulatory and law-enforcement officials of other foreign or
domestic jurisdictions, and shall maintain as confidential or
privileged any document, material or information received with
notice or the understanding that it is confidential or privileged
under the laws of the jurisdiction that is the source of the
document, material or information; and
(3) May enter into agreements governing sharing and use of
information including the furtherance of any regulatory or legal
action brought as part of the recipient's official duties.
(d) No waiver of any applicable privilege or claim of
confidentiality in the documents, materials or information shall
occur as a result of disclosure to the commissioner under this
section or as a result of sharing as authorized in subsection (c)
of this section.
(e) Nothing in this section shall prohibit the commissioner
from providing information to or receiving information from any
local, state, federal or international law-enforcement authorities,
including any prosecuting authority; or from complying with
subpoenas or other lawful process in criminal actions; or as may
otherwise be provided in this article.
§33-41-9. Creation and purpose of insurance fraud unit.
(a) The West Virginia insurance fraud unit is established
within the agency of insurance commissioner. The commissioner
shall provide full-time supervisory and investigative personnel of
the insurance fraud unit, who shall be qualified by training and
experience to perform the duties of their positions. The director
of the insurance fraud unit shall be a full-time position and shall
be appointed by the commissioner. The commissioner shall provide
office space, equipment, supplies, clerical and other staff
necessary for the insurance fraud unit to carry out its duties and
responsibilities under this article.
(b) The fraud unit may in its discretion:
(1) Initiate independent inquiries and conduct independent
investigations when the insurance fraud unit has cause to believe
that a fraudulent insurance act may be, is being or has been
committed;
(2) Review reports or complaints of alleged fraudulent
insurance activities from federal, state and local law-enforcement
and regulatory agencies, persons engaged in the business of
insurance, and the public to determine whether the reports require
further investigation and to conduct these investigations; and
(3) Conduct independent examinations of alleged fraudulent
insurance acts and undertake independent studies to determine the extent of fraudulent insurance acts.
(c) The insurance fraud unit shall have the authority to:
(1) Employ and train personnel to achieve the purposes of
this article and to employ legal counsel, investigators, auditors
and clerical support personnel and other personnel as the
commissioner determines necessary from time to time to accomplish
the purposes herein;
(2) Inspect, copy or collect records and evidence;
(3) Serve subpoenas;
(4) Share records and evidence with federal, state or local
law-enforcement or regulatory agencies, and enter into interagency
agreements;
(6) Execute search warrants and arrest warrants for criminal
violations of this article;
(7) Arrest upon probable cause without warrant a person found
in the act of violating or attempting to violate a provision of
this article;
(8) Make criminal referrals to the county prosecuting
authorities;
(9) Conduct investigations outside this state. If the
information the insurance fraud unit seeks to obtain is located
outside this state, the person from whom the information is sought
may make the information available to the insurance fraud unit to examine at the place where the information is located. The
insurance fraud unit may designate representatives, including
officials of the state in which the matter is located, to inspect
the information on behalf of the insurance fraud unit, and the
insurance fraud unit may respond to similar requests from officials
of other states.
(10) The insurance fraud unit, is expressly authorized to
initiate investigations and participate in the development of, and
if necessary, the prosecution of any health care provider,
including a provider of rehabilitation services, alleged to have
committed a fraudulent insurance act;
(11) Specific personnel, designated by the commissioner, shall
be permitted to operate vehicles owned or leased for the state
displaying Class A registration plates;
(12) Notwithstanding any provision of this code to the
contrary, specific personnel designated by the commissioner may
carry firearms in the course of their official duties after meeting
specialized qualifications established by the governor's committee
on crime, delinquency and correction, which qualifications shall
include the successful completion of handgun training provided to
law-enforcement officers by the West Virginia state police:
Provided, That nothing in this subsection shall be construed to
include the personnel so designated by the commissioner to carry firearms within the meaning of the term law-enforcement official as
defined in section one, article twenty-nine, chapter thirty of this
code; and
(13) The insurance fraud unit is not subject to any
requirement of article nine-a, chapter six of this code and the
investigations conducted by the insurance fraud unit and the
materials placed in the files of the unit as a result of any such
investigation are exempt from public disclosure under the
provisions of chapter twenty-nine-b of this code.
§33-41-10. Other law enforcement or regulatory authority.
This article shall not:
(a) Preempt the authority or relieve the duty of other
law-enforcement or regulatory agencies to investigate, examine and
prosecute suspected violations of law;
(b) Prevent or prohibit a person from disclosing voluntarily
information concerning insurance fraud to a law-enforcement or
regulatory agency other than the insurance fraud unit; or
(c) Limit the powers granted elsewhere by the laws of this
state to the commissioner or the insurance fraud unit to
investigate and examine possible violations of law and to take
appropriate action against wrongdoers.
§33-41-11. Fraudulent claims investigation unit of insurers.
(a) Every insurer admitted to do business in the state shall maintain effective procedures and resources to deter and
investigate fraudulent insurance acts prohibited by this article,
including a unit that will investigate suspected fraudulent
insurance acts. For the purpose of this section, "insurer" does
not include reinsurers or reinsurance as defined in section eleven,
article one of this chapter.
(b) Insurers may maintain the unit required by subsection (a)
of this section, using its employees or by contracting with others
for that purpose.
(c) Insurers shall establish the unit required by this section
no later than the first day of July, two thousand five.
(d) The unit may include the assignment of fraud investigation
to employees whose principal responsibilities are the investigation
and disposition of claims. If an insurer creates a distinct unit,
hires additional employees, or contracts with another entity to
fulfill the requirements of this article, the additional cost
incurred shall be included as an administrative expense.
(e) Insurers shall make personnel involved in investigating
insurance fraud and any files relating to insurance fraud
investigation available to the commissioner, local prosecuting
officials, special prosecuting attorneys, or other law-enforcement
agencies as needed in order to further the investigation and
prosecution of insurance fraud. Information supplied by an insurer and contained in such files shall upon receipt become part of the
investigative file and subject to the provisions of section eight
of this article. The insurer and its employees and agents shall be
entitled to immunity as provided in section seven of this article.
(f) Any expenses incurred by insurers as a result of this
article shall be defrayed by such insurers from their own funds and
shall not be borne by the state or by the special insurance fraud
fund.
§33-41-12. Rules.
The insurance commissioner may, in accordance with
article
three, chapter twenty-nine-a of this code, promulgate reasonable
rules, including but not limited to legislative rules, the
commissioner believe to be necessary or proper to carry out the
purposes of this article.
§33-41-13. Civil and criminal penalties.
A person who violates this article is subject to the
following:
(a) Suspension or revocation of license or certificate of
authority, civil penalties of up to ten thousand dollars per
violation, or both. Suspension or revocation of license or
certificate of authority and imposition of civil penalties shall be
pursuant to an order of the commissioner issued under section
thirteen, article two of this chapter. The commissioner's order may require a person found to be in violation of this article to
make restitution to persons aggrieved by violations of this
article;
(b) (1) If a person commits a fraudulent insurance act of the
value of one thousand dollars or more, such person is guilty of a
felony and, upon conviction thereof, shall be imprisoned in a
correctional facility not less than one nor more than ten years,
and shall be fined not more than ten thousand dollars.
(2) If a person commits a fraudulent insurance act of the
value of less than one thousand dollars, such person is guilty of
a misdemeanor and, upon conviction thereof, shall be confined in a
correctional facility for a term not to exceed one year or fined
not to exceed two thousand five hundred dollars, or both, in the
discretion of the court;
(c) A person convicted of a violation of section three of this
article shall be ordered to pay restitution to persons aggrieved by
the violation of this article. Restitution shall be ordered in
addition to a fine or imprisonment, but not in lieu of a fine or
imprisonment. The court may, in addition to any other penalty,
award the insurance fraud unit the costs of the investigation;
(d) Notwithstanding any other provision of law, a fine imposed
under this section is mandatory and not subject to suspension;
(e) Any money or other property that is awarded to the insurance commission or the insurance fraud unit as the result of
an investigation, or civil penalties that are imposed by the
commissioner, shall be credited to the special revenue fund
established in section thirteen, article three of this chapter and
the money shall be used to help finance the insurance fraud unit;
and
(f) A person convicted of a felony violation of this article
pursuant to subsection (b) of this section shall be disqualified
from engaging in the business of insurance.
§33-41-14. Violations of article; penalties for misdemeanor.
(a) It is a misdemeanor for any person to violate any of the
provisions of this article unless such violation is by this chapter
or other law of this state declared to be a felony.
(b) Every person convicted of a misdemeanor for a violation of
any of the provisions of this article for which another penalty is
not provided shall for a first conviction thereof be punished by a
fine of not more than one hundred dollars or by imprisonment for
not more than ten days; for a second such conviction within one
year thereafter such person shall be punished by a fine of not more
than two hundred dollars or by imprisonment for not more than
twenty days or by both such fine and imprisonment; upon a third or
subsequent conviction such person shall be punished by a fine of
not more than five hundred dollars or by imprisonment for not more than six months or both such fine and imprisonment.
§33-41-15. Severability.
If any provisions of this article, or the application of a
provision to any person or circumstances, shall be held invalid,
the remainder of the article and the application of the provision
to persons or circumstances other than those to which it is held
invalid, shall not be affected.
NOTE: The purpose of this bill is to establish an insurance
fraud unit within the office of the Insurance Commissioner.
§33-22-2a, §33-23-2a, §33-24-4b, §33-25-6a and §33-25A-24b are
new; therefore, strike-throughs and underscoring have been omitted.
§§33-41-1 through 15 have been completely rewritten;
therefore, strike-throughs and underscoring have been omitted.