4.__Fund.__The Treasurer of State shall deposit all assessments collected pursuant to this section into a separate nonlapsing fund that must be used solely to defray the expenses incurred by the Department of Professional and Financial Regulation, Bureau of Insurance, Insurance Fraud Investigative Unit, as established in Title 24-A, section 2188.__All interest earned on the fund must be paid to the fund.

SUMMARY

Current law requires insurers to develop and implement an antifraud plan to prevent, detect and investigate all forms of insurance fraud.

This bill strengthens the antifraud effort by:

1. Establishing within the Department of Professional and Financial Regulation, Bureau of Insurance a new Insurance Fraud Investigative Unit, which must include 3 full-time staff members. The purpose of the fraud unit is to assist the Superintendent of Insurance, or any law enforcement agency, in investigating insurance fraud or other insurance-related criminal activity and in developing and implementing programs to prevent insurance fraud and abuse;

2. Requiring insurers to create special investigative units within their companies, using fraud investigators, who may be employees of the insurers or independent contractors. An insurance company that believes that an insurance fraud has been committed is required to report its findings along with any other information relative to the claim to the Insurance Fraud Investigative Unit; and