INSURANCE FRAUD PREVENTION ACT - REPEALED — 1994 Pa. Act 166 (historical enacted text)

Historical Act text

PRIOR PRINTER'S NO. 923 PRINTER'S NO. 2375
INTRODUCED BY SCANLON, HOLL AND FISHER, MARCH 30, 1993
SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED,
SEPTEMBER 19, 1994
AN ACT
1 Providing for insurance fraud prevention; establishing the
2 Insurance Fraud Prevention Authority and providing for its
3 powers and duties; establishing the Insurance Fraud
4 Prevention Trust Fund; establishing the Division of Insurance <--
5 Fraud A SECTION FOR INVESTIGATION AND PROSECUTION within the <--
6 Office of Attorney General and providing for its powers and
7 duties; and providing FOR FUNDING OF INSURANCE FRAUD <--
8 INVESTIGATION AND PROSECUTION IN COUNTY DISTRICT ATTORNEYS'
9 OFFICES, for confidentiality and for certain immunities.
10 TABLE OF CONTENTS
11 Chapter 1. Preliminary Provisions
12 Section 101. Short title.
13 Section 102. Purpose.
14 Section 103. Definitions.
15 Chapter 3. Insurance Fraud Prevention Authority
16 Section 301. Establishment of authority.
17 Section 302. Powers and duties.
18 Section 303. Insurance Fraud Prevention Trust Fund.
19 Section 304. Immunity.
20 Chapter 5. Division SECTION of Insurance Fraud <--
1 Section 501. Establishment.
2 Section 502. Powers and duties.
3 Section 503. Document confidentiality and immunity from
4 subpoena.
5 Section 504. Duties of insurers, employees, agents and brokers.
6 Section 505. Persons not connected with insurance industry.
7 Section 506. Refusal to cooperate with investigation.
8 Section 507. Immunity.
9 Chapter 11. Miscellaneous Provisions
10 Section 1101. Other law enforcement authority.
11 Section 1102. Repeals. <--
12 Section 1103. Effective date.
13 SECTION 1102. SEVERABILITY. <--
14 SECTION 1103. REPEALS.
15 SECTION 1104. EFFECTIVE DATE.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 CHAPTER 1
19 PRELIMINARY PROVISIONS
20 Section 101. Short title.
21 This act shall be known and may be cited as the Insurance
22 Fraud Prevention Act.
23 Section 102. Purpose.
24 The purpose of this act is to establish, coordinate and fund
25 activities in this Commonwealth to prevent, combat and reduce
26 insurance fraud, to improve and support insurance fraud law
27 enforcement and administration and to improve and support
28 insurance fraud prosecution.
29 Section 103. Definitions.
30 The following words and phrases when used in this act shall
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1 have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Authority." The Insurance Fraud Prevention Authority
4 established in section 301.
5 "Board." The board of directors of the Insurance Fraud
6 Prevention Authority.
7 "Division." The Division of Insurance Fraud in the Office of <--
8 Attorney General.
9 "Fund." The Insurance Fraud Prevention Trust Fund
10 established in section 303.
11 "Insurance fraud." Any activity defined as an offense under
12 18 Pa.C.S. § 4117 (relating to insurance fraud).
13 "SECTION OF INSURANCE FRAUD" OR "SECTION." THE SECTION OF <--
14 INSURANCE FRAUD IN THE OFFICE OF ATTORNEY GENERAL.
15 CHAPTER 3
16 INSURANCE FRAUD PREVENTION AUTHORITY
17 Section 301. Establishment of authority.
18 (a) Establishment.--There is hereby established a body
19 corporate and politic to be known as the Insurance Fraud
20 Prevention Authority. The purposes, powers and duties of the
21 authority shall be vested in and exercised by a board of
22 directors.
23 (b) Composition.--The board of the authority shall consist
24 of seven members, composed and appointed in accordance with the
25 following:
26 (1) The Attorney General OR HIS DESIGNEE. <--
27 (2) The Commissioner of the Pennsylvania State Police. <--
28 (3) Four representatives of insurers, two of whom shall
29 be appointed by the President pro tempore of the Senate and
30 two of whom shall be appointed by the Governor. Each of the
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1 four members shall be, respectively, a representative of a
2 foreign or domestic insurer having a greater than 1% share of
3 this Commonwealth's workers' compensation, accident and
4 health, automobile or general commercial liability market.
5 (2) A REPRESENTATIVE OF THE PHILADELPHIA FEDERAL <--
6 INSURANCE FRAUD TASK FORCE.
7 (3) FOUR REPRESENTATIVES OF INSURERS, ONE OF WHOM SHALL
8 BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE, ONE
9 OF WHOM SHALL BE APPOINTED BY THE MINORITY LEADER OF THE
10 SENATE, ONE OF WHOM SHALL BE APPOINTED BY THE SPEAKER OF THE
11 HOUSE OF REPRESENTATIVES AND ONE OF WHOM SHALL BE APPOINTED
12 BY THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES. EACH
13 OF THE FOUR MEMBERS SHALL BE, RESPECTIVELY, A REPRESENTATIVE
14 OF AN INSURER WRITING WORKERS' COMPENSATION, ACCIDENT AND
15 HEALTH, AUTOMOBILE OR GENERAL COMMERCIAL LIABILITY INSURANCE
16 IN THIS COMMONWEALTH.
17 (4) One representative of purchasers of insurance in
18 this Commonwealth who is not employed by or connected with
19 the business of insurance and is appointed by the Governor.
20 (c) Terms.--With the exception of the Attorney General and
21 the Commissioner of the Pennsylvania State Police REPRESENTATIVE <--
22 OF THE PHILADELPHIA FEDERAL INSURANCE FRAUD TASK FORCE, members
23 of the board shall serve for terms of four years. No appointed
24 member shall be eligible to serve more than two full consecutive
25 terms.
26 (d) Compensation.--Members of the board shall serve without
27 compensation, but shall receive reimbursement for all reasonable
28 and necessary expenses incurred in connection with their duties
29 in accordance with the rules of the Executive Board.
30 (e) Quorum.--A majority of the members of the board shall
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1 constitute a quorum for the transaction of business at a meeting
2 or the exercise of a power or function of the authority.
3 Notwithstanding any other provision of law, action may be taken
4 by the board at a meeting upon a vote of the majority of its
5 members present in person or through the use of amplified
6 telephonic equipment, if authorized by the bylaws of the board.
7 The board shall meet at the call of the chairperson or as may be
8 provided in the bylaws of the board. The board shall meet at
9 least quarterly. Meetings of the board may be held anywhere
10 within this Commonwealth. The board shall elect its own
11 chairperson.
12 Section 302. Powers and duties.
13 The authority shall have the powers necessary and convenient
14 to carry out and effectuate the purposes and provisions of this
15 act and the purposes of the authority and the powers delegated
16 by other laws, including, but not limited to:
17 (1) Employ administrative, professional, clerical and
18 other personnel as may be required and organize the staff as
19 may be appropriate to effectuate the purposes of this act.
20 (2) Have a seal and alter the same at pleasure, have
21 perpetual succession, make, execute and deliver contracts,
22 conveyances and other instruments necessary or convenient to
23 the exercise of its powers and make and amend bylaws.
24 (3) Procure insurance against any loss in connection
25 with its property, assets or activities.
26 (4) Apply for, solicit, receive, establish priorities
27 for, allocate, disburse, contract for, administer and spend
28 funds in the fund, and other funds that are made available to
29 the authority from any source consistent with the purposes of
30 this act.
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1 (5) Make grants to and provide financial support for the
2 Division of Insurance Fraud SECTION OF INSURANCE FRAUD, THE <--
3 UNIT OF INSURANCE FRAUD IN THE PHILADELPHIA DISTRICT
4 ATTORNEY'S OFFICE, OTHER COUNTY DISTRICT ATTORNEYS' OFFICES,
5 other government agencies, community, consumer and business
6 organizations consistent with the purposes of the act THIS <--
7 ACT AND CONSIDERING THE EXTENT OF THE INSURANCE FRAUD PROBLEM
8 IN EACH COUNTY OF THIS COMMONWEALTH.
9 (6) Invest ADVISE THE STATE TREASURER IN RELATION TO THE <--
10 INVESTMENT OF any money held in the fund and any funds held
11 in reserve or sinking funds, and any money not required for
12 immediate use or disbursement, at its discretion and to name <--
13 and use AND TO ADVISE THE STATE TREASURER IN RELATION TO THE <--
14 USE OF depositories for its money MONEYS OF THE FUND. <--
15 (7) Assess the scope of the problem of insurance fraud,
16 including areas of this Commonwealth where the problem is
17 greatest, and review State and local criminal justice
18 policies, programs and plans dealing with insurance fraud.
19 (8) Develop and sponsor the implementation of Statewide
20 plans, programs and strategies to combat insurance fraud,
21 improve the administration of the insurance fraud laws and
22 provide a forum for identification of critical problems for
23 those persons dealing with insurance fraud.
24 (9) Coordinate the development, adoption and
25 implementation of plans, programs and strategies relating to
26 interagency and intergovernmental cooperation with respect to
27 insurance fraud law enforcement.
28 (10) Promulgate rules or regulations related to the
29 expenditure of moneys held in the fund in order to assist and
30 support those agencies, units of government, COUNTY DISTRICT <--
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1 ATTORNEYS' OFFICES and other organizations charged with the
2 responsibility of reducing insurance fraud or interested and
3 involved in achieving this goal.
4 (11) Audit at its discretion the plans and programs that
5 it has funded in whole or in part in order to evaluate the
6 effectiveness of the plans and programs and withdraw funding
7 should the authority determine that a plan or program is
8 ineffective or is no longer in need of further financial
9 support from the fund.
10 (12) Report annually, on or before the first day of
11 April falling after the act has been in effect for at least
12 12 months and annually thereafter on the same schedule, to
13 the Governor and the General Assembly on the authority's
14 activities in the preceding period of operation.
15 (13) Meet with the Division SECTION of Insurance Fraud <--
16 on at least a quarterly basis in order to advise and assist
17 it in implementing its statutory mandate.
18 (14) Advise the Governor GENERAL ASSEMBLY on matters <--
19 relating to insurance fraud and recommend to the Governor <--
20 GENERAL ASSEMBLY, on an annual basis, any changes to the <--
21 operation of the Division SECTION of Insurance Fraud. The <--
22 report shall be available for public inspection.
23 (15) ESTABLISH EITHER ALONE OR IN COOPERATION WITH <--
24 AUTHORIZED INSURANCE COMPANIES AND LICENSED AGENTS AND
25 PRODUCERS A FUND TO REWARD PERSONS NOT CONNECTED WITH THE
26 INSURANCE INDUSTRY WHO PROVIDE INFORMATION OR FURNISH
27 EVIDENCE LEADING TO THE ARREST AND CONVICTION OF PERSONS
28 RESPONSIBLE FOR INSURANCE FRAUD.
29 (16) REQUIRE AS A CONDITION OF EVERY APPLICATION AND
30 REQUEST FOR FINANCIAL SUPPORT, INCLUDING EVERY APPLICATION
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1 FOR ONGOING RENEWAL OF A MULTIYEAR GRANT UNDER SECTION
2 303(F), THAT THE APPLICANT DESCRIBED BOTH THE NATURE OF, AND
3 THE AMOUNT OF FUNDING FOR, THE ACTIVITIES, IF ANY, DEVOTED TO
4 THE INVESTIGATION AND PROSECUTION OF INSURANCE FRAUD AT THE
5 TIME OF THE APPLICATION OR REQUEST.
6 (17) REQUIRE AS A CONDITION OF EVERY APPLICATION AND
7 REQUEST FOR FINANCIAL SUPPORT THAT EVERY RECIPIENT OF FUNDING
8 REPORT ANNUALLY WITHIN FOUR MONTHS OF THE CLOSE OF EACH
9 FUNDING CYCLE TO THE AUTHORITY ON THE USE OF THE FUNDS
10 OBTAINED FROM THE AUTHORITY DURING THE PREVIOUS YEAR,
11 INCLUDING A DESCRIPTION OF PROGRAMS IMPLEMENTED AND RESULTS
12 OBTAINED. THE AUTHORITY WILL INCLUDE THIS INFORMATION ON THE
13 USE OF FUNDS BY GRANTEES IN ITS ANNUAL REPORT UNDER PARAGRAPH
14 (12) AND SEND A COPY SPECIFICALLY TO THE CHAIRMAN AND THE
15 MINORITY CHAIRMAN OF THE STANDING COMMITTEES OF THE SENATE
16 AND THE CHAIRMAN AND THE MINORITY CHAIRMAN OF THE STANDING
17 COMMITTEES OF THE HOUSE OF REPRESENTATIVES WITH JURISDICTION
18 OVER INSURANCE MATTERS.
19 Section 303. Insurance Fraud Prevention Trust Fund.
20 (a) Establishment.--There is hereby established a separate
21 account in the State Treasury to be known as the Insurance Fraud
22 Prevention Trust Fund. This fund shall be administered by the
23 STATE TREASURER WITH THE ADVICE OF THE authority. All interest <--
24 earned from the investment or deposit of moneys accumulated in
25 the fund shall be deposited in the fund for the same use.
26 (b) Funds.--All moneys deposited into the fund shall be held
27 in trust and shall not be considered general revenue of the
28 Commonwealth, but shall be used only to effectuate the purposes
29 of this act as determined by the authority and shall be subject
30 to audit by the Auditor General.
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1 (c) Assessment.--
2 (1) Prior to the first day of April following the
3 effective date of this act and prior to the first day of
4 April of each year thereafter so long as this act shall
5 remain in effect, each insurer engaged in the writing of the
6 insurance coverages listed below, as a condition of its
7 authorization to transact business in this Commonwealth,
8 shall pay into the fund in trust an amount equal to the
9 product obtained by multiplying $8,000,000 by a fraction, the
10 numerator of which is the total DIRECT premium collected for <--
11 those coverages listed below by that insurer in this
12 Commonwealth during the preceding calendar year and the
13 denominator of which is the total DIRECT premium written on <--
14 such coverages in this Commonwealth by all insurers in the
15 same period.
16 (2) The following coverages, as listed in the Annual
17 Statistical Report of the Insurance Department, shall be
18 considered in determining assessments: all fire and casualty
19 business DIRECT BUSINESS WRITTEN; and accident and health and <--
20 credit accident and health written under
21 life/annuity/accident and health business DIRECT BUSINESS <--
22 WRITTEN. Assessments made under this section shall not be
23 considered burdens and prohibitions under section 212 of the
24 act of May 17, 1921 (P.L.789, No.285), known as The Insurance
25 Department Act of one thousand nine hundred and twenty-one.
26 (3) ASSESSMENTS FOR HEALTH PLAN CORPORATIONS AND <--
27 PROFESSIONAL HEALTH SERVICES PLAN CORPORATIONS WHEN ADDED
28 TOGETHER SHALL NOT BE MORE THAN 10% OF THE TOTAL ASSESSMENT
29 AUTHORIZED BY THIS SUBSECTION. IF THE TOTAL ASSESSMENT FOR
30 THESE ORGANIZATIONS IS MORE THAN 10%, SUCH ORGANIZATIONS WILL
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1 SHARE THE ASSESSMENT UP TO THE 10% LIMIT AMONG THEMSELVES IN
2 THE SAME PROPORTION AS THEY WOULD OTHERWISE HAVE SHARED THEIR
3 CALCULATED ASSESSMENT ABSENT THIS LIMIT. ANY DEFICIENCY IN
4 THE TOTAL ASSESSMENT CAUSED BY THE APPLICATION OF THIS LIMIT
5 WILL BE SHARED BY ALL OTHER ENTITIES BEING ASSESSED IN THE
6 SAME PROPORTIONS AS THEY ARE SHARING THE REST OF THE
7 ASSESSMENT.
8 (d) Base amount.--In succeeding years the authority may vary
9 the base amount of $8,000,000, provided, however, that any
10 increase which on an annual basis exceeds the increase in the
11 Consumer Price Index for this Commonwealth must be approved by
12 three of the four insurance representatives on the board.
13 (e) Expenditures.--Moneys in the fund may be expended by the
14 authority for the following purposes:
15 (1) Effectuate the powers, duties and responsibilities
16 of the authority as set forth in this act.
17 (2) Pay the costs of administration and operation of the
18 Division of Insurance Fraud. SECTION OF INSURANCE FRAUD AND <--
19 THE UNIT FOR INSURANCE FRAUD IN THE PHILADELPHIA DISTRICT
20 ATTORNEY'S OFFICE.
21 (3) Provide financial support to law enforcement,
22 correctional agencies and prosecutors COUNTY DISTRICT <--
23 ATTORNEYS' OFFICES for programs designed to reduce insurance
24 fraud and to improve the administration of insurance fraud
25 laws.
26 (4) Provide financial support for other governmental
27 agencies, community, consumer and business organizations for
28 programs designed to reduce insurance fraud and to improve
29 the administration of insurance fraud laws.
30 (5) Provide financial support to programs designed to
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1 inform insurance consumers about the costs of insurance fraud
2 to individuals and to society and to suggest methods for
3 preventing insurance fraud.
4 (6) Provide financial support for reward programs
5 leading to the arrest and conviction of persons and
6 organizations engaged in insurance fraud.
7 (7) Provide financial support for other plans, programs
8 and strategies consistent with the purposes of this act.
9 (F) MULTIYEAR GRANTS.--IN FUNDING THE SECTION OF INSURANCE <--
10 FRAUD, THE UNIT FOR INSURANCE FRAUD IN THE PHILADELPHIA DISTRICT
11 ATTORNEY'S OFFICE AND IN FUNDING GRANT REQUESTS, THE AUTHORITY
12 MAY CONSIDER AND APPROVE REQUESTS FOR MULTIYEAR GRANTS OF NOT
13 MORE THAN FOUR YEARS IN LENGTH, ALTHOUGH EXTENSIONS OF SUCH
14 MULTIYEAR COMMITMENTS MAY BE RENEWED FROM YEAR TO YEAR. NO
15 FUNDING REDUCTION UNDER SUBSECTION (D) CAN BE IMPOSED BY THE
16 AUTHORITY IN ANY GIVEN YEAR WHICH WOULD OPERATE TO REDUCE
17 FUNDING FOR ANY MULTIYEAR APPROVED PROGRAM FOR WHICH PERSONS
18 HAVE BEEN HIRED FOR FULL-TIME POSITIONS TO A FUNDING LEVEL WHERE
19 SUCH POSITIONS MUST BE TERMINATED, UNLESS THE ORGANIZATION
20 EMPLOYING SUCH PERSONS CERTIFIES EITHER THAT OTHER EQUIVALENT
21 POSITIONS ARE AVAILABLE OR THAT SUCH POSITIONS WITH THE
22 ANTIFRAUD PROGRAM CAN BE FUNDED FROM OTHER SOURCES.
23 (f) (G) Dissolution.--In the event that the trust fund is <--
24 discontinued or the authority is dissolved by operation of law,
25 any balance remaining in the fund, after deducting
26 administrative costs for liquidation, shall be returned to
27 insurers in proportion to their financial contributions to the
28 fund in the preceding calendar year.
29 Section 304. Immunity.
30 In the absence of malice, no board member and no employee of
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1 the authority shall be subject to any civil or criminal
2 liability for receiving or disclosing information related to
3 insurance fraud or the activities of the authority. In the
4 absence of malice, persons or organizations shall not be subject
5 to civil or criminal liability for providing information
6 relating to insurance fraud to the authority, its employees,
7 agents or designees. This section does not abrogate or modify in
8 any way any common law or statutory privilege or immunity
9 heretofore enjoyed by any person.
10 CHAPTER 5
11 DIVISION SECTION OF INSURANCE FRAUD <--
12 Section 501. Establishment.
13 (a) Establishment.--There is hereby established within the
14 Office of Attorney General, a Division SECTION of Insurance <--
15 Fraud to investigate and prosecute insurance fraud IN ACCORDANCE <--
16 WITH JURISDICTIONAL MANDATES AS SPECIFIED BY THE ACT OF OCTOBER
17 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS
18 ACT, AND 18 PA.C.S. § 4117 (RELATING TO INSURANCE FRAUD).
19 (b) Funding.--All costs of administration and operation of
20 the division SECTION shall be borne by the fund. Any moneys or <--
21 other property awarded to the division SECTION as costs of <--
22 investigation or as a fine shall be credited to the fund.
23 Section 502. Powers and duties.
24 The division SECTION shall have the powers necessary and <--
25 convenient to carry out and effectuate the purposes and
26 provisions of this act and the powers delegated by other laws,
27 including, but not limited to, the power:
28 (1) To employ administrative, professional, clerical and
29 other personnel as may be required and organize the staff as
30 may be appropriate to effectuate the purposes of this act.
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1 (2) To initiate inquiries and conduct investigations
2 when the division SECTION has reason to believe that <--
3 insurance fraud may have been or is being committed.
4 (3) To respond to notifications or complaints of
5 suspected insurance fraud generated by State and local
6 police, other law enforcement authorities, governmental
7 units, including the Federal Government, and the general
8 public.
9 (4) To review notices and reports of insurance fraud
10 submitted by authorized insurers, their employees and
11 licensed insurance agents or producers and to select those
12 incidents of suspected fraud as, in its judgment, require
13 further investigation and undertake such investigation.
14 (5) To conduct independent examination of insurance
15 fraud, conduct studies to determine the extent of insurance
16 fraud, deceit or intentional misrepresentation of any kind in
17 the insurance process and publish information and reports on
18 such examinations or studies.
19 (6) To prosecute both on its own and in conjunction with
20 other SECTIONS AND divisions within the Office of Attorney <--
21 General any incidents of insurance fraud INVOLVING MORE THAN <--
22 ONE COUNTY OF THIS COMMONWEALTH OR INVOLVING ANY COUNTY OF
23 THIS COMMONWEALTH AND ANOTHER STATE disclosed by its
24 investigations and to assemble evidence, prepare charges,
25 bring charges and OR, UPON REQUEST OF ANY OTHER PROSECUTORIAL <--
26 AUTHORITY, otherwise assist any other THAT prosecutory <--
27 authority having jurisdiction over such incidents.
28 (7) To report incidents of insurance fraud disclosed by
29 its investigations to any other appropriate law enforcement,
30 administrative, regulatory or licensing agency.
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1 (8) To pay over all civil and criminal fines and
2 penalties collected for violations and acts subject to
3 investigation and prosecution into the fund.
4 (9) To undertake programs to investigate insurance fraud
5 and to meet, at least on a quarterly basis, with the
6 Insurance Fraud Prevention Authority.
7 (10) To employ investigators TRAINED IN ACCORDANCE WITH <--
8 THE ACT OF JUNE 18, 1974 (P.L.359, NO.120), REFERRED TO AS
9 THE MUNICIPAL POLICE EDUCATION AND TRAINING LAW. The laws
10 applicable to law enforcement officers of this Commonwealth
11 shall be applicable to the investigators. Investigators of
12 the division SECTION shall have the following additional <--
13 powers:
14 (i) To make arrests IN ACCORDANCE WITH EXISTING <--
15 JURISDICTIONAL RULES for criminal violations established
16 as a result of their investigations.
17 (ii) To execute arrest and search warrants IN <--
18 ACCORDANCE WITH EXISTING JURISDICTIONAL RULES for the
19 same criminal violations.
20 (iii) To administer oaths and affirmations, subpoena <--
21 witnesses, compel their attendance, take evidence and
22 require the production of any books, papers,
23 correspondence, memoranda, agreements, or other documents
24 or records that the division deems relevant or material
25 to an inquiry concerning insurance fraud.
26 (iv) To arrest, without warrant, any person found in
27 the act of violating any of the provisions of applicable
28 laws.
29 (11) To designate, if evidence, documentation and
30 related materials sought are located outside of this
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1 Commonwealth, representatives, including officials of the
2 state where the matter is located, to secure the matter or
3 inspect the matter on its behalf. The person so requested
4 shall either make the matter available to the division <--
5 SECTION or shall make the matter available for inspection or <--
6 examination by a designated representative of the division <--
7 SECTION. <--
8 (12) To establish either alone or in cooperation with <--
9 authorized insurance companies and licensed agents and
10 producers a fund to reward persons not connected with the
11 insurance industry who provide information or furnish
12 evidence leading to the arrest and conviction of persons
13 responsible for insurance fraud.
14 Section 503. Document confidentiality and immunity from
15 subpoena.
16 (a) General rule.--Papers, records, documents, reports,
17 materials or other evidence relative to the subject of an
18 insurance fraud investigation shall remain confidential and
19 shall not be subject to public inspection for so long as the
20 division SECTION deems it reasonably necessary to complete its <--
21 investigation or for so long as the division SECTION deems it <--
22 reasonably necessary to protect the privacy of the person
23 investigated, to protect the person furnishing the matter or to
24 be in public interest.
25 (b) Subpoena.--
26 (1) Papers, records, documents, reports, materials or
27 other evidence relative to the subject of an insurance fraud
28 investigation shall not be subject to subpoena until opened
29 for public inspection by the division unless the division <--
30 SECTION UNLESS THE OFFICE OF ATTORNEY GENERAL consents or <--
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1 until, after notice to the division SECTION and a hearing, a <--
2 court of record determines that the division SECTION will not <--
3 be unnecessarily hindered by COMPLIANCE WITH a subpoena. <--
4 (2) Investigators employed by the division SECTION shall <--
5 not be subject to subpoena in civil actions by any court in
6 this Commonwealth to testify concerning any matter of which
7 they have knowledge pursuant to a pending or continuing
8 insurance fraud investigation being conducted by the division <--
9 SECTION UNLESS THE OFFICE OF ATTORNEY GENERAL CONSENTS OR <--
10 UNTIL, AFTER NOTICE TO THE OFFICE OF ATTORNEY GENERAL AND A
11 HEARING, A COURT OF RECORD DETERMINES THAT THE INVESTIGATION
12 WILL NOT BE HINDERED BY THE APPEARANCE.
13 Section 504. Duties of insurers, employees, agents and brokers.
14 Every insurer, every employee of an insurer and every
15 licensed agent or broker shall cooperate fully with the division <--
16 SECTION. Where an insurer, agent or broker who believes that an <--
17 insurance fraud has been or is being committed notifies the
18 division SECTION, the notification shall toll any applicable <--
19 time period in the act of July 22, 1974 (P.L.589, No.205), known
20 as the Unfair Insurance Practices Act, or any other law or
21 regulation.
22 Section 505. Persons not connected with insurance industry.
23 Any person having knowledge of or who believes that an
24 insurance fraud is being or has been committed may send to the
25 division SECTION a report or information pertinent to the <--
26 knowledge and belief.
27 Section 506. Refusal to cooperate with investigation.
28 It is unlawful for any person to resist an arrest authorized
29 by this act or in any manner to interfere either by abetting or
30 assisting such resistance or otherwise interfere with division <--
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1 SECTION investigators in the duties imposed upon them by this <--
2 act OR BY ANY OTHER APPLICABLE LAW. <--
3 Section 507. Immunity.
4 (a) General rule.--In the absence of malice, persons or
5 organizations providing information to or otherwise cooperating
6 with the division SECTION, its employees, agents or designees, <--
7 shall not be subject to civil or criminal liability for
8 supplying the information.
9 (b) Civil and criminal liability.--
10 (1) In the absence of malice, persons or organizations
11 shall not be subject to civil or criminal liability for
12 complying with an order issued by a court of competent
13 jurisdiction acting in response to a request by the division <--
14 SECTION. <--
15 (2) In the absence of malice, the Attorney General and
16 any employee, agent or designee of the Office of Attorney
17 General and the division SECTION shall not be subject to <--
18 civil or criminal liability for the execution of official
19 activities or duties of the division SECTION by virtue of the <--
20 publication of any report or bulletin related to the official
21 activities or duties of the division SECTION. <--
22 (c) Construction of section.--This section does not abrogate
23 or modify in any way any common law or statutory privilege or
24 immunity heretofore enjoyed by any person.
25 CHAPTER 11
26 MISCELLANEOUS PROVISIONS
27 Section 1101. Other law enforcement authority.
28 This act shall not:
29 (1) Preempt the authority of or relieve the duty of any
30 other law enforcement agencies to investigate and prosecute
19930S0850B2375 - 17 -
1 suspected violations of law.
2 (2) Prevent or prohibit a person from voluntarily
3 disclosing any information concerning insurance fraud to any
4 law enforcement agency other than the division SECTION. <--
5 (3) Limit any of the powers granted to the Insurance
6 Commissioner to investigate possible violations of law and to
7 take appropriate action against wrongdoers.
8 SECTION 1102. SEVERABILITY. <--
9 IF ANY PROVISION OF THIS ACT OR ITS APPLICATION THEREOF TO
10 ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, THE INVALIDITY DOES
11 NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS ACT WHICH
12 CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION OR
13 APPLICATION, AND TO THIS END THE PROVISIONS OF THIS ACT ARE
14 SEVERABLE.
15 Section 1102 1103. Repeals. <--
16 All acts and parts of acts are repealed insofar as they are
17 inconsistent with this act.
18 Section 1103 1104. Effective date. <--
19 This act shall take effect in 60 days.
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