HBA-TBM, SEP H.B. 186 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 186 By: Burnam, Lon Insurance 2/9/2001 Introduced BACKGROUND AND PURPOSE Under current law, fire marshals, fire chiefs, and police officers are authorized to request insurance companies to release certain information regarding a fire loss of $1,000 or more as a means to investigate possible insurance fraud. House Bill 186 expands the insurance fraud investigative powers of police officers, fire chiefs, and fire marshals to include the investigation of possible insurance fraud in cases of burglary, robbery, and death claims. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 186 amends the Insurance Code to provide that, in the course of a criminal investigation, the state fire marshal, the fire marshal of a political subdivision in this state, the chief of a fire department in this state, a chief of police of a municipality in this state, or a sheriff (official) in this state may make a written request that an insurance company (company) release information relating to a claimed burglary or robbery loss or a death claim seeking life insurance proceeds. The company is required to release the information and to cooperate with any official authorized to request information relating to a claim. The bill also provides that an official who requests information is only authorized to request an insurance policy relevant to an insurance claim under investigation and the application for that policy; policy premium payment records; the history of previous claims made by the insured; and material relating to the investigation of the insurance claim, including statements of any person, proof of loss, or other relevant evidence. The bill provides that a public official or agency is not authorized to adopt or require any form of periodic report by an insurer and requires officials and department personnel who receive the information to maintain its confidence until the release of the information is required by a criminal or civil proceeding. The bill provides that if the insurance company receives a request for information regarding a claim the company believes is false, fraudulent, or exaggerated, the company is required to: notify the requesting official, furnish that official with all relevant material acquired during the company's investigation, cooperate and take action as requested by any law enforcement agency, and permit an inspection of the company's records relating to the policy and the loss by any person ordered by a court to inspect those records. In the absence of fraud and malice, neither an insurance company nor a person who provides information on behalf of an insurance company is liable for damages in a civil action or subject to criminal prosecution for an oral or written statement made, or any other action taken, that is necessary to supply appropriate information. The bill further provides that an official may be required to testify regarding information in the official's possession relating to the insurance claim in a civil action in which a person seeks recovery under an insurance policy against an insurance company for the insurance claim. The bill prohibits an insurer or the insurer's representative from intentionally refusing to follow or violating the prescribed requirements regarding the insurance investigations of burglary, robbery losses, or death claims. EFFECTIVE DATE September 1, 2001.