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.