Insurance fraud measure moves to Senate
FRANKFORT, Ky. (WTVQ) – A bill that would tighten state laws regarding insurance fraud and motor vehicle anti-theft discounts received state House approval Tuesday.
Insurance fraud provisions in House Bill 313 would extend civil immunity to companies that report information on suspected criminal activity to the National Insurance Crime Bureau, while antitheft provisions would ensure that motor vehicle insurers give an “appropriate discount” to policyholders.
HB 313 sponsor Rep. Joseph M. Fischer, R-Fort Thomas, said the insurance fraud provision is needed to ensure that Kentucky insurance companies can report suspected fraud outside of Kentucky’s borders. Current law provides civil immunity only to companies who report in-state to the Kentucky Department of Insurance, he said.
“Because the incidences of insurance fraud transcends state borders, it’s important that insurers and the (NICB) are free to share this information … throughout the country,” said Fischer.
The antitheft provision, he said, is required to bring statutory language regarding auto alarm security systems “up to modern standards.”
“Since the current law was passed in 1986, the auto industry has developed security technology that far surpasses the primitive alarm systems that were available in 1986,” said Fischer. Provisions in HB 313, he said, will amend the 1986 provisions and enact new language that requires insurance companies to base antitheft discounts on “sound actuarial data for automobiles that contain the upgraded technology.”
Implementation of the antitheft provisions would be delayed under January 1, 2021 to give motor vehicle companies time to comply with the changes, said Fischer.
HB 313 passed the House 93-0. The bill now goes to the Senate for consideration.