21Mar2007… 0511h





AN ACT relative to insurance fraud.

SPONSORS: Rep. DeStefano, Merr 13; Rep. McLeod, Graf 2; Rep. D. Flanders, Belk 4; Rep. Headd, Rock 3



This bill clarifies certain provisions of the insurance fraud law and authorizes the commissioner of insurance to adopt rules for the implementation of the insurance fraud law.

This bill is a request of the insurance department.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21Mar2007… 0511h




In the Year of Our Lord Two Thousand Seven

AN ACT relative to insurance fraud.

Be it Enacted by the Senate and House of Representatives in General Court convened:

37:1 Insurance Fraud; Service of Process. Amend RSA 417:26 to read as follows:

417:26 Evidence Collection. If, by its own inquiries or as a result of complaints, the insurance department has any reason to believe that a person has engaged in, or is engaging in, any criminal activity or any violations involving title XXXVII, it may administer oaths, serve subpoenas ordering the attendance of witnesses or production of material, and collect evidence. Service of such subpoenas and subpoenas duces tecum may be made by:

I. Delivering a duly executed copy to the person to be served or an agent authorized by law to receive service of process;

II. Delivering a duly executed copy to the person’s principal place of business or abode in this state, if any; or

III. Mailing a duly executed copy via registered mail, return receipt requested, to the person to be served, or an agent authorized by law to receive service of process.

37:2 Insurance Fraud; Reporting by Insurers. Amend RSA 417:28 to read as follows:

417:28 Reporting of Fraudulent Claims by Insurers. Any [company which believes] person or entity regulated under title XXXVII which has reason to believe that an insurance fraud or insurance-related criminal activity has been committed shall[,] make a report to the unit within 60 days [of forming such belief, send to the unit,] or within a shorter period under such circumstances as the commissioner may prescribe by rule. No waiver of any such regulated person’s or entity’s applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of such disclosure to the unit. Such report shall be made on a form prescribed by the unit[,] and shall contain the information requested and such additional information [relative to the claim and other parties claiming loss or damage because of the claim] as the unit may require. The unit shall review such report and select such claims as, in its judgment, warrant further investigation. In the absence of fraud or malice, no public official or insurance company or person who furnishes information on behalf of the insurance company shall be liable for damages in a civil action or subject to criminal prosecution for any oral or written statement made or any other action taken that is necessary to supply information required pursuant to this section.

37:3 Insurance Fraud; Antifraud Initiatives. Amend RSA 417:30, I to read as follows:

I. Except for insurance companies writing only credit, home warranty, travel, or title insurance, every insurance company licensed to write direct business in this state shall have antifraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent insurance acts, including[:

(a) Fraud investigators, who may be insurer employees or independent contractors; or

(b) An] a written antifraud plan submitted to the commissioner.

37:4 New Section; Rulemaking. Amend RSA 417 by inserting after section 30 the following new section:

417:31 Rulemaking. The commissioner may adopt rules, pursuant to RSA 400-A:15, I, as necessary for the implementation of this subdivision.

37:5 Effective Date. This act shall take effect January 1, 2008.

Approved: May 14, 2007

Effective: January 1, 2008