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Committee reviews bill to expand insurance‑fraud definitions and investigative powers
Summary
HB 2394 would broaden the definition of insurance fraud to add acts such as false billing and improper coding, raise certain offenses to a Class B felony, and expand restitution and investigative authorities at the Office of the Insurance Commissioner; the OIC and industry stakeholders largely supported the substitute while clarifying limits on regulatory authority.
The Consumer Protection and Business Committee heard a staff briefing and stakeholder testimony Jan. 27 on House Bill 2394 and an offered substitute (HDash3207.1) that revises the crime and programmatic definition of insurance fraud and adjusts the Commissioner's authorities.
Committee staff Peter Clodfelter said the substitute corrects a scrivener’s error, narrows or clarifies certain duties (for example, removing certified public accountants from a disclosure requirement in the…
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