Kan. and Mo. Legislatures Consider Proposals Targeting Insurance Fraud

March 17, 2006

The Coalition Against Insurance Fraud is reporting that the Kansas and Missouri legislatures are considering proposals that would require insurers to report suspected frauds and allow the insurance department to issue cease-and-desist orders more quickly.

The Kansas House recently approved a bill (SB 207) requiring insurers to report suspected fraud to the insurance department. The measure also grants insurers immunity from civil suits when they report suspected frauds to the department. In addition the measure requires insurers to launch anti-fraud initiatives.

The House and Senate differ over mandatory reporting and how broad the definition of insurance fraud should be. Both chambers are working from a draft proposed by the Senate. A compromise is expected shortly.

In Missouri a bill is being considered that would allow the insurance department to issue cease-and-desist orders more quickly and forcefully against crooks who market and sell bogus insurance in the state.

SB 895 also increases civil fines for selling fake coverage to $20,000 per violation, up from the current $100. Swindlers also could be fined up to $1 million civilly if the fraud causes victims financial losses.

For a complete copy of the proposals go the Coalition Against Consumer Fraud Web site: www.insurancefraud.org

Source: Coalition Against Consumer Fraud

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