House of Representatives State of Utah




         W030 STATE CAPITOL COMPLEX . P.O. BOX 145030

Figure

Graphic file number 0 named letter~1.jpg with height 78 p and width 81 p Left aligned
        SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029         
        February 8, 2007

Mr. Speaker:

    The Business and Labor Committee recommends H.B. 126, REPORTING OF FRAUDULENT INSURANCE ACTS, by Representative D. Aagard, be replaced and reports a favorable recommendation on 1st Sub. H.B. 126, REPORTING OF FRAUDULENT INSURANCE ACTS with the following amendments:

1.    Page 3, Lines 57 through 71 :    

             57          (1) (a) A person shall report a fraudulent insurance act to the department if:
             58          (i) the person has a good faith belief on the basis of a preponderance of the evidence
             59      that

{   an act that   }        a fraudulent insurance act       is being, will be, or has been committed [related to title insurance shall report

             60      the fraudulent act to the commissioner in a writing that provides]
{   is a fraudulent insurance act   } ;

             61      and

2.    Page 3, Lines 62 through 71
    House Committee Amendments
    2-2-207 :
    

             62          (ii) the person is:
             63          
{   (A) an insurer;

             64          (B) a producer;
             65          (C) a limited line producer;
             66          (D) a customer service representative;
             67          (E) a consultant;
             68          (F) a managing general agent;
             69          (G)  
}
{         (A)       an insurance adjuster;   }        (A) an insurer;       or

             70          
{   (H)   }        (B)       in relation to the business of title insurance, an auditor that is employed by a title

             71      insurer.



3.    Page 4, Lines 98 through 104 :    

             98          (3) The department
{   shall   }        may       by rule made in accordance with Title 63, Chapter 46a, Utah

             99      Administrative Rulemaking Act, provide a process by which
{   an insurer and an individual

             100      described in Subsection (1)(a)(ii) may comply with Subsection (1) by submitting a single report
             101      of an act described in Subsection (1)(a).  
}
  a person described in Subsection (1)(a)(ii) may comply with the requirements of Subsection (1) by reporting a fraudulent insurance act to the insurer with whom the person is employed, except that the rule shall provide that if the person reports the fraudulent insurance act to the insurer, the insurer is required to report the fraudulent insurance act to the department.      

             102          (4) A person described in Subsection (1)(a)(ii) who in good faith makes a report under
             103      this section is immune from civil action, civil penalty, or damages for making that report in
             104      accordance with Section 31A-31-105 .
  (5) This section does not apply to a fraudulent insurance act related to health insurance.      

    Respectfully,

    Stephen D. Clark
    Committee Chair

Voting: 11-0-2
7 HB0126.HC1.wpd 2/8/07 10:19 am anicholson/AMN PO/AMN


Bill Number
Action Class
Action Code

*HB0126S01*
*H*
*HCRSUBAMD*

HB0126S01
H
HCRSUBAMD