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House passes amended insurance-fraud bill after debate over civil penalties and funding
Summary
After extended floor debate and multiple amendments, the Utah House on Feb. 19 passed the Second Substitute House Bill 76 to address insurance fraud, removing agency civil-penalty authority and changing how enforcement will be funded; the measure moves to the Senate after a 63–10 vote.
The Utah House of Representatives passed an amended version of Second Substitute House Bill 76 on Feb. 19, sending the measure to the Senate after a 63–10 vote. The bill, sponsored on the floor by Representative Yardley, redefines insurance fraud, authorizes information sharing between government agencies and insurers, establishes cooperating-immunity provisions and sets criminal and civil sanctions in the insurance code with a three-year sunset in 1997.
Why it matters: Supporters said the bill will give the state tools to detect and deter insurance fraud — a cost driver in premiums — while opponents warned it created the risk of administrative overreach and threatened litigants’ access to courts. The House adopted a substitute amendment removing the insurance department’s administrative civil-penalty authority and later adjusted how the measure…
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