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Representative Baralt’s bill clarifies insurance‑fraud enforcement; committee reports it favorably

Senate Insurance Committee · April 8, 2026
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Summary

House Bill 7 39 would clarify that the Department of Insurance and the insurance commissioner can intervene when individuals sell insurance policies but do not provide coverage; the Senate Insurance Committee reported the bill favorably with no opposition.

State Representative Stephanie Baralt told the Senate Insurance Committee that House Bill 7 39 clarifies the department’s authority to intervene in cases where people sell insurance policies, collect premiums and do not provide coverage.

"This is an insurance fraud prevention bill that basically is clarifying that the department and the commissioner have the ability to intervene if there is someone acting as an insurance agent selling policies without actually providing insurance coverage," Representative Stephanie Baralt said during her presentation.

Baralt said the bill narrows the change by excluding attorneys actively providing legal services and medical providers assisting in the payment of claims. She added that if the department suspects criminal activity it would refer matters to law enforcement.

Senator Bass moved to report the bill favorable. With no questions from committee members and no recorded opposition, the committee reported House Bill 7 39 favorably.

The bill now proceeds to the Senate floor under the committee report; the sponsor said she would be available to answer further questions as the floor process proceeds.