Committee approves bill to expand insurance fraud definition, sponsor says it will curb premium-driving schemes

Senate Bill 24, which broadens the definition of a fraudulent insurance act to include misrepresentations about property damage and repair costs, passed unanimously in committee and was reported favorably with the committeeexpression that it should pass on the House floor.

Senator Rick Girdler, sponsor of the bill, described the measure as intended "to slow down fraud and to stop a little bit of fraud," and said fraud contributes to higher insurance premiums. Eric DeCampos, representing the National Insurance Crime Bureau, told the committee that "insurance fraud estimated by the FBI costs the average US family between 4 and 7000 dollars, over a 10 year period in the form of increased premiums." He said the bill would expand the definition of a fraudulent insurance act "to include any statements that misrepresent the scope of property damages and repair costs associated with a property insurance claim," and help address a common practice of inflated bills and estimates.

Committee members asked whether the bill created new felony offenses; the transcript records that it does not create a new felony and does not appear to change felony-related provisions, though the committee deferred to the bill drafter for precise statutory drafting. The committee moved the bill with a motion by Representative Hebron and a second by Representative Bray; the roll call produced unanimous support and the chairman announced the bill passed.

The committee record in the transcript does not include the bills final statutory text or a detailed fiscal analysis in the excerpt provided. The committee reported the bill favorably and expressed the opinion that it should pass on the House floor.