HOUSE BILL 971316
BY REPRESENTATIVES T. Williams, Agler, Hagedorn, Kreutz, Nichol, Owen, Reeser, and Tucker;
also SENATOR Ament.
CONCERNING JURISDICTION TO ENFORCE LAWS GOVERNING
MATTERS CONSTITUTING INSURANCE FRAUD, AND MAKING AN APPROPRIATION
THEREFOR.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 101108
(5), Colorado Revised Statutes, 1994 Repl. Vol., is amended to
read:
101108. Duties of commissioner
reports publications fees disposition
of funds adoption of rules. (5) It
is the duty of the commissioner to make such investigations and
examinations as are authorized by this title (except part 7 of
article 4 and article 15), article 7 of title 12, and article
14 of title 24, C.R.S., and to investigate such information as
is presented to him
THE COMMISSIONER by authority which he
THE COMMISSIONER believes to be reliable pertaining to violation
of the insurance laws of Colorado, and it is his
THE COMMISSIONER'S duty to present the result of such investigations
and examinations FOR FURTHER INVESTIGATION AND PROSECUTION to
EITHER the district attorney of the proper judicial district OR
THE ATTORNEY GENERAL when, in his
THE COMMISSIONER'S opinion, such violations justify such action.
SECTION 2. 101127
(7) (a), Colorado Revised Statutes, 1994 Repl. Vol., as amended,
is amended to read:
101127. Fraudulent insurance
acts immunity for furnishing information relating to suspected
insurance fraud legislative declaration.
(7) (a) On and after January 1, 1997, EACH INSURANCE
COMPANY SHALL PROVIDE ON all printed applications for insurance,
OR ON ALL INSURANCE POLICIES, and
OR ON all claim forms provided and required by an insurance company,
or required by law, whether printed or electronically transmitted,
shall contain
a statement, in bold type
CONSPICUOUS NATURE, permanently affixed to the application, INSURANCE
POLICY, or claim form substantially the same as the following:
"It is unlawful to knowingly provide false,
incomplete, or misleading facts or information to an insurance
company for the purpose of defrauding or attempting to defraud
the company. Penalties may include imprisonment, fines, denial
of insurance, and civil damages. Any insurance company or agent
of an insurance company who knowingly provides false, incomplete,
or misleading facts or information to a policyholder or claimant
for the purpose of defrauding or attempting to defraud the policyholder
or claimant with regard to a settlement or award payable from
insurance proceeds shall be reported to the Colorado division
of insurance within the department of regulatory agencies.".
SECTION 3. 101204
(4) and (5), Colorado Revised Statutes, 1994 Repl. Vol., are amended
to read:
101204. Conduct of examinations.
(4) Any person who knowingly or willfully testifies
falsely in reference to any matter material to an investigation,
examination, or inquiry is guilty of a misdemeanor and, upon conviction
thereof, shall be punished by a fine of not more than five hundred
THOUSAND dollars, or by imprisonment in the county jail for not
more than three months, or by both such fine and imprisonment.
(5) Any person who knowingly or willfully
makes any false certificate, entry, or memorandum upon any of
the books or papers of a company or upon any statement filed or
offered to be filed in the division or used in the course of any
examination, inquiry, or investigation, with the intent to deceive
the commissioner or any person appointed by the commissioner to
make such examination, inquiry, or investigation, is guilty of
a misdemeanor and, upon conviction thereof, shall be punished
by a fine of not more than one
FIVE thousand dollars, or by imprisonment in the county jail for
not less than two months nor more than twelve months, or by both
such fine and imprisonment.
SECTION 4. Part
1 of article 1 of title 10, Colorado Revised Statutes, 1994 Repl.
Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION
to read:
101127.5. Fraudulent insurance
acts enforcement. THE ATTORNEY
GENERAL SHALL HAVE CONCURRENT JURISDICTION WITH THE DISTRICT ATTORNEYS
OF THIS STATE TO INVESTIGATE AND PROSECUTE ALLEGATIONS OF CRIMINAL
CONDUCT RELATED TO INSURANCE FRAUD PURSUANT TO THIS TITLE AND
TITLES 8 AND 18, C.R.S. THE COST TO THE ATTORNEY GENERAL OF SUCH
INVESTIGATIONS AND PROSECUTIONS SHALL BE PAID FROM FEES COLLECTED
FROM ENTITIES REGULATED BY THE DIVISION PURSUANT TO 103207
(1) (e).
SECTION 5. 103207
(1), Colorado Revised Statutes, 1994 Repl. Vol., as amended, is
amended BY THE ADDITION OF A NEW PARAGRAPH to read:
103207. Fees paid by insurance
companies. (1) There shall
be paid to the division of insurance by every entity regulated
by the division of insurance in this state the following:
(e) FOR THE PURPOSE OF PROVIDING ADEQUATE
FUNDS TO THE COLORADO DEPARTMENT OF LAW FOR THE INVESTIGATION
AND PROSECUTION OF ALLEGATIONS OF INSURANCE FRAUD, IN ADDITION
TO ANY OTHER FEE COLLECTED PURSUANT TO THIS SUBSECTION (1), EACH
ENTITY REGULATED BY THE DIVISION SHALL PAY A NONREFUNDABLE ANNUAL
FEE OF ONE HUNDRED TWENTY DOLLARS, PAYABLE ON OR BEFORE MARCH
1 OF EACH YEAR.
SECTION 6. 1031104,
Colorado Revised Statutes, 1994 Repl. Vol., as amended, is amended
BY THE ADDITION OF A NEW SUBSECTION to read:
1031104. Unfair methods of competition and unfair or deceptive acts or practices. (4) THE FOLLOWING IS DEFINED AS AN UNFAIR PRACTICE IN THE BUSINESS OF INSURANCE: FOR AN INSURER TO DENY, REFUSE TO ISSUE, REFUSE TO RENEW, REFUSE TO REISSUE, CANCEL, OR OTHERWISE TERMINATE A MOTOR VEHICLE INSURANCE POLICY, TO RESTRICT MOTOR VEHICLE INSURANCE COVERAGE ON ANY PERSON, OR TO ADD ANY SURCHARGE OR RATING FACTOR TO A PREMIUM OF A MOTOR VEHICLE INSURANCE POLICY SOLELY BECAUSE OF:
(a) A CONVICTION UNDER SECTION 1246112
(1) (c), C.R.S., SECTION 1247128 (1) (b), C.R.S.,
OR SECTION 1813122 (2), C.R.S., OR ANY COUNTERPART
MUNICIPAL CHARTER OR ORDINANCE OFFENSE OR BECAUSE OF ANY DRIVER'S
LICENSE REVOCATION RESULTING FROM SUCH CONVICTION. THIS PARAGRAPH
(a) INCLUDES, BUT IS NOT LIMITED TO, A DRIVER'S LICENSE REVOCATION
IMPOSED UNDER SECTION 422125 (1) (m), C.R.S.
(b) THE LICENSEE'S INABILITY TO OPERATE
A MOTOR VEHICLE DUE TO PHYSICAL INCOMPETENCE IF THE LICENSEE OBTAINS
AN AFFIDAVIT FROM A REHABILITATION PROVIDER OR LICENSED PHYSICIAN
ACCEPTABLE TO THE MOTOR VEHICLE DIVISION OF THE DEPARTMENT.
SECTION 7. Appropriation.
(1) In addition to any other appropriation, there
is hereby appropriated, out of any moneys in the division of insurance
cash fund not otherwise appropriated, to the department of regulatory
agencies, division of insurance, for the fiscal year beginning
July 1, 1997, the sum of one hundred seventy-four thousand eight
hundred forty-six dollars ($174,846), or so much thereof as may
be necessary, for the implementation of this act.
(2) In addition to any other appropriation,
there is hereby appropriated to the department of law, for the
fiscal year beginning July 1, 1997, the sum of one hundred seventy-four
thousand eight hundred forty-six dollars ($174,846) and 2.5 FTE,
or so much thereof as may be necessary, for the provision of legal
services to the department of regulatory agencies related to the
implementation of this act. Said sum shall be from cash funds
exempt received from the department of regulatory agencies out
of the appropriation made in subsection (1) of this section.
SECTION 8. Effective
date. This act shall take effect at 12:01 a.m. on the day
following the expiration of the ninetyday period after final
adjournment of the general assembly that is allowed for submitting
a referendum petition pursuant to article V, section 1 (3) of
the state constitution; except that, if a referendum petition
is filed against this act or an item, section, or part of this
act within such period, then the act, item, section, or part,
if approved by the people, shall take effect on the date of the
official declaration of the vote thereon by proclamation of the
governor.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO