HF 864

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 03/30/2016 10:20am

A bill for an act
relating to insurance fraud; establishing an administrative penalty for insurance
fraud; providing that certain persons convicted of insurance fraud may not
enforce contracts for no-fault benefits; establishing a crime for accident victim
solicitation; amending Minnesota Statutes 2014, sections 45.0135, by adding a
subdivision; 65B.44, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 609.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 45.0135, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Administrative penalty for insurance fraud. new text end

new text begin (a) The commissioner may:
new text end

new text begin (1) impose an administrative penalty against any person in an amount as set forth in
paragraph (b) for each intentional act of insurance fraud committed by that person; and
new text end

new text begin (2) order restitution to any person suffering loss as a result of the insurance fraud.
new text end

new text begin (b) The administrative penalty for each violation described in paragraph (a) may be
no more than:
new text end

new text begin (1) $20,000 if the funds or the value of the property or services wrongfully obtained
exceeds $5,000;
new text end

new text begin (2) $10,000 if the funds or value of the property or services wrongfully obtained
exceeds $1,000 but not more than $5,000;
new text end

new text begin (3) $3,000 if the funds or value of the property or services wrongfully obtained is
more than $500, but not more than $1,000; and
new text end

new text begin (4) $1,000 if the funds or value of the property or services wrongfully obtained is
less than $500.
new text end

new text begin (c) If an administrative penalty is not paid after all rights of appeal have been
waived or exhausted, the commissioner may bring a civil action in a court of competent
jurisdiction to collect the administrative penalty, including expenses and litigation costs,
reasonable attorney fees, and interest.
new text end

new text begin (d) This section does not affect a person's right to seek recovery against any person
that commits insurance fraud.
new text end

new text begin (e) For purposes of this subdivision, "insurance fraud" has the meaning given in
section 60A.951, subdivision 4.
new text end

new text begin (f) After imposing a penalty under this subdivision, a person has 30 days from
receipt of the notice of the penalty to notify the commissioner in writing that the person
intends to contest the penalty through a hearing. The hearing request must specifically
identify the penalty being contested and state the grounds for contesting it. If the person
fails to notify the commissioner that the person intends to contest the penalty, the penalty
is final and is not subject to further judicial or administrative review. If a person notifies
the commissioner that the person intends to contest a penalty issued under this subdivision,
the Office of Administrative Hearings shall conduct a hearing in accordance with the
applicable provisions of chapter 14 for hearings in contested cases.
new text end

Sec. 2.

Minnesota Statutes 2014, section 65B.44, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Person convicted of insurance fraud. new text end

new text begin (a) A person convicted of
insurance fraud under section 609.611 in a case related to this chapter or of employment of
runners under section 609.612 may not enforce a contract for payment of services eligible
for reimbursement under subdivision 2 against an insured or reparation obligor.
new text end

new text begin (b) After a period of five years from the date of conviction, a person described in
paragraph (a) may apply to district court to extinguish the collateral sanction set forth in
paragraph (a), which the court may grant in its reasonable discretion.
new text end

Sec. 3.

new text begin [609.613] ACCIDENT VICTIM SOLICITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin A person shall not intentionally contact any individual
that the person knows has been involved in a motor vehicle accident, when that knowledge
was obtained by the person through data collected or created under section 13.82,
subdivision 6, or any immediate family member of that individual, for the purpose of
directly soliciting or offering to provide a commercial service until at least 30 days after
the date of the motor vehicle accident. This subdivision does not apply if either of the
following circumstances exists:
new text end

new text begin (1) the individual or the individual's immediate family member has requested the
contact from that person; and
new text end

new text begin (2) the person is an employee or agent of an insurance company and the person is
contacting the individual or the individual's immediate family member on behalf of that
insurance company to adjust a claim. This subdivision does not apply to a referral of the
individual or the individual's immediate family member to an attorney or to any other
person for representation by an attorney.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin As used in this section:
new text end

new text begin (1) "directly soliciting or offering to provide a commercial service" means a written
solicitation or offer, including by electronic means, made to the individual or a family
member seeking to provide a service for a fee or other remuneration that is based upon the
knowledge or belief that the individual has sustained a personal injury as a direct result of
a motor vehicle accident and that is directed toward that individual or a family member;
new text end

new text begin (2) "immediate family member" means the individual's spouse, parent, child, or
sibling; and
new text end

new text begin (3) "personal injury" means any physical or mental injury, including wrongful death.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment and apply with respect
to acts committed on or after that date.
new text end