H.B. No. 2388
relating to insurance fraud reporting requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 701.051, Insurance Code, is amended to
read as follows:
Sec. 701.051. DUTY TO REPORT. (a) Not later than the 30th
day after the date the person makes the determination or reasonably
suspects that [
A person who determines] a fraudulent insurance act
has been or is about to be committed in this state, the person:
(1) shall report the information in writing to the
insurance fraud unit of the department, in the format prescribed by
the fraud unit or by the National Association of Insurance
(2) may also report the information to another [ or an]
authorized governmental agency [ not later than the 30th day after
the date the person makes the determination].
(b) A report made to [ one authorized governmental agency or]
the insurance fraud unit [ department] constitutes notice to each
other authorized governmental agency [ and the department].
(c) A person who is a member of an organization primarily
dedicated to the detection, investigation, and prosecution of
insurance fraud fully complies with the person's obligations under
Subsection (a) by authorizing the organization to report on the
person's behalf information required to be reported under
Subsection (a). The person retains any liability resulting from
the failure of the organization to report in a manner that complies
with Subsection (a).
SECTION 2. Section 701.109, Insurance Code, is amended to
read as follows:
Sec. 701.109. REQUEST FOR INVESTIGATION BY INSURER. (a)
An insurer who conducts [ must complete] an independent
investigation of suspected insurance [ claim] fraud is not required
to complete that investigation [ and draft a report of the insurer's
findings] before requesting that the commissioner conduct an
(b) When requesting the commissioner to conduct an
investigation, the [ The] insurer shall draft a report of the
insurer's findings and [ must] submit the report and any [ the]
related investigation file to the commissioner as soon as
practicable on the conclusion [ as part] of the insurer's
independent [ request that the commissioner conduct an]
SECTION 3. Section 701.052(f), Insurance Code, is repealed.
SECTION 4. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I certify that H.B. No. 2388 was passed by the House on May
13, 2005, by a non-record vote.
Chief Clerk of the House
I certify that H.B. No. 2388 was passed by the Senate on May
25, 2005, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate