New Law in Oklahoma Toughens Penalties for Insurance Fraud

A bill recently passed and signed by the governor toughens the penalties for insurance fraud, state officials say.

Senate Bill 1439, requested by Oklahoma Insurance Commissioner John D. Doak, is expected to save taxpayers millions of dollars, according to the Oklahoma Insurance Department.

“The law sends the message that if you steal money from Oklahomans, we’re going to come after you,” said Commissioner Doak.

The new law makes insurance fraud a felony.

It also allows prosecutors to group several smaller thefts together and charge the perpetrator with a more serious crime. An example of this would be an unscrupulous agent charging someone $800 a month when the premium was actually just $700. After several months of overcharges, the crime would be elevated from a misdemeanor to a felony.

The bill raises the punishment to as much as five years in prison. Thieves may also have to pay back twice the amount of money stolen. Right now, the fine is just $1,000. The bill also allows officials to seize any property obtained with the illegal funds.

“This is a great piece of legislation that will go a long way in closing gaps and making our Anti-Fraud Unit more effective in pursuing insurance fraud investigations,” said Michael Copeland, Director of the Oklahoma Insurance Department’s Anti-Fraud Team.

The new law takes effect July 1, 2012.

Topics Fraud Legislation Oklahoma