HCS HB 866 -- INSURANCE FRAUD

SPONSOR:  Yates (Wilson, 130)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
Policy by a vote of 13 to 0.

This substitute specifies that it is illegal for any person to
employ a fraudulent scheme or make a false statement or
concealment of a material fact relating to an insurance
transaction.  The person can be fined not more than $100,000, be
imprisoned for not more than 10 years, or both.  A court may also
order that restitution be paid to the victim and the Department
of Insurance revoke the offender's insurance license.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill provides for stronger
penalties for those who commit insurance fraud.  People must feel
that they can trust their insurance companies, and the bill will
help to make that happen.

Testifying for the bill were Representative Wilson (130);
Department of Insurance; Missouri Insurance Coalition; and
American Family Insurance.

OPPONENTS:  There was no opposition voiced to the committee.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm