79R4968 PB-F

By:  Taylor                                                       H.B. No. 3373



A BILL TO BE ENTITLED

AN ACT

relating to insurance fraud reporting requirements.                           
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 701.051, Insurance Code, as effective 
April 1, 2005, 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 has 
reasonable grounds for suspicion, a [A] person who determines or 
reasonably suspects that a fraudulent insurance act has been or is 
about to be committed:
		(1)  shall report the information in writing to the 
insurance fraud unit of the department, in the format prescribed by 
the fraud unit;  and
		(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 appropriate authorized governmental agency [and the 
department].
	SECTION 2.  Section 701.052(b), Insurance Code, as effective 
April 1, 2005, is amended to read as follows:
	(b)  A person may furnish information as described in 
Subsection (a) orally or in writing, including through publishing, 
disseminating, or filing a bulletin or report.  A person may furnish 
the information anonymously.
	SECTION 3.  Section 701.108, Insurance Code, as effective 
April 1, 2005, is amended to read as follows:
	Sec. 701.108.  [INSURER'S] DUTY TO PROVIDE INFORMATION.  On 
the written request of an authorized governmental agency, an 
insurer, or a person authorized to act on behalf of the insurer,
shall provide to the agency any relevant information or material 
relating to a matter under investigation.
	SECTION 4.  Section 701.109, Insurance Code, as effective 
April 1, 2005, 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 
investigation.
	(b)  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] investigation.
	SECTION 5.  Section 701.052(f), Insurance Code, as effective 
April 1, 2005, is repealed.
	SECTION 6.  This Act takes effect September 1, 2005.