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Minnesota Legislature

Office of the Revisor of Statutes

SF 782

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 08/25/2015 02:10pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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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; 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 65B.

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,
upon recommendation of the Commerce Fraud Bureau:
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) Hearings under this subdivision must be conducted in accordance with chapter
14 and any other applicable law.
new text end

Sec. 2.

new text begin [65B.1325] RIGHT TO CONSULT WITH COUNSEL.
new text end

new text begin An insurer may not settle a claim within 30 days of an accident from which the
claim arises unless the insurer gives the claimant written disclosure that the claimant has
the legal right to consult with an attorney in evaluating the settlement and the claimant
separately and specifically acknowledges the disclosure in writing.
new text end

Sec. 3.

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. 4. new text beginEFFECTIVE DATE.
new text end

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