Report Title:

Immunity for Insurance Fraud Reporting; Health Fraud Prosecution

Description:

Establishes immunity from civil liability for persons reporting insurance fraud, unless a person has acted with actual malice or committed perjury. Authorizes the insurance fraud investigations unit to prosecute health insurance fraud. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1727

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

RELATING TO INSURANCE FRAUd.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 2 to be appropriately designated and to read as follows:

"§431:2-   Immunity from liability for disclosure of fraud. A person, acting without actual malice, shall not be subject to civil liability for providing information, including filing a report, furnishing oral or written evidence, providing documents, or giving testimony concerning suspected, anticipated, or completed public or private insurance fraud to a court, the commissioner, the insurance fraud investigation unit, the National Association of Insurance Commissioners, the National Insurance Crime Bureau, any federal, state, or county law enforcement or regulatory agency, or another insurer if the information is provided for the purpose of preventing, investigating, or prosecuting insurance fraud, unless the person commits perjury."

SECTION 2. Section 431:10A-131, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) This section shall not supersede any other law relating to theft, fraud, or deception. Insurance fraud may be prosecuted under this section[,] by the insurance fraud investigations unit established in section 431:10C-307.8, or any other applicable section, and may be enjoined by a court of competent jurisdiction."

SECTION 3. Section 431:10C-307.8, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) The unit shall employ attorneys, investigators, investigator assistants, and other support staff as necessary to promote the effective and efficient conduct of the unit's activities. Notwithstanding any other law to the contrary, the attorneys may represent the State in any judicial or administrative proceeding, including but not limited to criminal prosecutions and actions for declaratory and injunctive relief, to enforce all applicable state laws relating to insurance fraud,[including but not limited to criminal prosecutions and actions for declaratory and injunctive relief.], including sections 431:10A-131, 431:10C-307.7, 432:1-106, and 432D-18.5. Investigators may serve process and apply for and execute search warrants pursuant to chapter 803 and the rules of court but shall not otherwise have the powers of a police officer or deputy sheriff. The commissioner may hire such employees not subject to chapter 76.

(c) The purpose of the insurance fraud investigations unit shall be to conduct a statewide program for the prevention, investigation, and prosecution of insurance fraud cases and violations of all applicable state laws relating to insurance fraud[.], including sections 431:10A-131, 431:10C-307.7, 432:1-106, and 432D-18.5. The insurance fraud investigations unit may also review and take appropriate action on complaints relating to insurance fraud."

SECTION 4. Section 432:1-106, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) This section shall not supersede any other law relating to theft, fraud, or deception. Insurance fraud may be prosecuted under this section[,] by the insurance fraud investigations unit established in section 431:10C-307.8, or any other applicable section, and may be enjoined by a court of competent jurisdiction."

SECTION 5. Section 432D-18.5, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) This section shall not supersede any other law relating to theft, fraud, or deception. Insurance fraud may be prosecuted under this section[,] by the insurance fraud investigations unit established in section 431:10C-307.8, or any other applicable section, and may be enjoined by a court of competent jurisdiction."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2030.