New Mexico Legislature Weighs Insurance Fraud Bills

January 23, 2009

The New Mexico Legislature is evaluating two insurance fraud bills this session. Both SB 117 and SB 118 were introduced by Republican Sen. Carroll H. Leavell.

SB 117 would allow courts to aggregate six months of faluse insurance claims when determining the penalty. According to bill text, if the agent, broker, solicitor, examining physician, appliant or other person’s fraud results in a potential loss to the victim insurer, $250 or less is considered a petty misdemeanor; more than $250 to $500 is considered a misdemeanor; more than $500 to $2,500 is considered a fourth degree felony; more than $2,500 to $20,000 is considered a third degree felony; and more than $20,000 is considered a second degree felony.

“If 10 or more fraud violations occur within any consecutive six-month period, the amounts of purported or potential losses resulting from the violations may be aggregated to determine the penalty,” bill text states.

SB 118 would expand the crime of racketeering to include false application, claim or proof of loss with respect to insurance.

Was this article valuable?

Here are more articles you may enjoy.