The Colorado House Business Affairs and Labor Committee unanimously approved a bill allowing insurance companies to share with each other information about suspected fraud cases. The bill requires insurers to report fraud to authorized agencies. It also offers civil immunity for insurers or individuals that provide information regarding suspected cases of fraud. This legislation is similar to immunity laws effective in 34 other states. In testimony before the committee, insurance industry officials pointed out that the total cost of all insurance fraud is estimated to be between $85 billion and $120 billion per year. The bill strikes a balance between pursuing suspected cases of fraud and protecting an individual’s right to privacy. There are safeguards limiting the use of this information to prevention, investigation and prosecution of fraud cases.
Topics Fraud
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