An Act To Create the Insurance Fraud Division within the Bureau of Insurance
Maine Legislature, Session 122, LD 1990
Committee Amendment CA_A_H924 (House)
Amends: 16 MRSA §614, 24-A MRSA §2186, 24-A MRSA §2187, 24-A MRSA §2188

COMMITTEE AMENDMENT "~,, to H.P. 1394, L.D. 1990, Bill, "An 
Act To Create the Insurance Fraud Division within the Bureau of 
Insurance" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
. Sec. 1. 16 MRSA §614, sub-§I, as amended by PL 1999, c. 155, 
Pt. A, §5, is further amended to read: 
1. 
Limitation 
on 
dissemination 
of 
intelligence 
and 
investigative 
information. 
Reports 
or 
records 
that 
contain 
intelligence and investigative information and that are prepared 
by, prepared at the direction of or kept in the custody of a 
local, county or district criminal justice agency; the Bureau of 
State Police: the Department of the Attorney General: the Maine 
Drug Enforcement Agency; the Office of State Fire Marshal; the 
Department of 
Corrections~ the Department of Professional and 
Financial 
Regulation, 
Bureau 
of 
Insurance, 
Insurance 
Fraud 
Division; the criminal law enforcement units of the Department of 
Marine 
Resources 
or 
the 
Department of 
Inland Fisheries 
and 
Wildlife: or the Department of Conservation, Dj,vision of Forest 
Protection when the reports or records pertain to arson are 
confidential and may not be disseminated if there is a reasonable 
possibility that public release or inspection of the reports or 
records would: 
A. 
Interfere with law enforcement proceedings; 
Page l-LR3088(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "~,, to H.P. 1394, L.D. 1990 
B. 
Result 
in 
public 
dissemination 
of 
prejudicial 
information concerning an accused person or concerning the 
prosecution's evidence that will interfere with the ability 
of a court to impanel an impartial jury: 
C. 
Constitute an unwarranted invasion of personal privacy; 
D. 
Disclose the identity of a confidential source; 
E. 
Disclose confidential information furnished only by the 
confidential source; 
F. 
Disclose trade secrets or other confidential commercial 
or financial information designated as such by the owner or 
source of the information or 
by the 
Department of the 
Attorney General; 
G. 
Disclose 
investigative 
techniques 
and 
security plans and procedures not generally 
general public; 
procedures 
or 
known by the 
H. 
Endanger the life or physical safety of any individual, 
including law enforcement personnel; 
I. 
Disclose 
conduct 
or 
submi tted by any person in 
arbitration conducted under 
of the Attorney General; 
statements 
made 
or 
documents 
the course of any mediation or 
the auspices of the Department 
J. 
Disclose information designated confidential by 
some 
other statute; or 
K. 
Identify the source of complaints made to the Department 
of the Attorney General involving violations of consumer or 
antitrust laws. 
Sec. 2. 24-AMRSA§2179, as amended by PL 1973, c. 585, §12, 
is repealed. 
Sec. 3. 24-A MRSA §2186, sub-§4, 1f1fC and D are enacted to read: 
c. An insurer having knowledge or a reasonable belief that a 
fraudulent insurance act is being, will be or has been 
committed 
shall 
provide 
to 
the 
superintendent 
the 
information 
reguired by 
the 
superintendent 
in 
a 
manner 
prescribed by 
the 
superintendent. 
For 
purposes 
of 
this 
subsection, "insurer" does not include an insurance producer 
or other person acting on behalf of the insurer. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 1394, L.D. 1990 
433, 
D. 
Any person having knowledge or a reasonable belief that 
a fraudulent insurance act is being, will be or has been 
committed may provide to the superintendent the information 
reguired by the superintendent in a manner prescribed by the 
superintendent. 
Sec. 4. 24-A MRS A §2187, sub-§l, 1JB, as amended by PL 2005, c. 
§1 and affected by §28, is further amended to read: 
B. 
"Authorized agency" or "authorized agencies" means: 
(1) 
The Attorney General: 
(2) 
A district attorney responsible for prosecution in 
the municipality where the fraud occurred; 
(3) 
The Federal Bureau of Investigation, or any other 
federal agency, only for the purposes of subsection 2: 
(4) 
The State Fire Marshal: 
(5) 
The Superintendent of Insurance: 
(6) 
The Superintendent of Financial Institutions; 
(7) 
The 
United 
States 
Attorney's 
office 
when 
authorized or charged with investigation or prosecution 
of 
the 
insurance 
fraud 
in question, 
only 
for 
the 
purposes of subsection 2; 
(8) 
The State Police, state law enforcement officials 
or local law enforcement officials: SF 
( 9) 
The 
National 
Association 
of 
Insurance 
CommissionersTl.. 
(10) 
An 
international 
association 
of 
insurance 
supervisors; 
(11) 
The International Criminal Police Organization; 
(12) 
A national insurance 
crime bureau or similar 
organization that collects, receives, investigates or 
analyzes information concerning insurance fraud; 
(13) 
Insurance 
supervisors 
or 
law 
enforcement 
authorities outside the United States; or 
(14) The Workers' Compensation Board. 
COMMITTEE AMENDMENT 
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c! 
COMMITTEE AMENDMENT 'A" to H.P. 1394, L.D. 1990 
Sec. 5. 24-A MRSA §2187, sub-§4, as enacted by PL 1997, c. 
675, §2, is repealed. 
Sec. 6. 24-A MRSA §2187, sub-§5, as enacted by PL 1997, c. 
675, §2, is amended to read: 
5. 
Immunity. 
In the absence of fraud, malice or bad faith, 
any 
person, 
including, 
but 
not 
limited 
to, 
an 
insurer 
or 
authorized 
agency, 
that 
furnished 
information 
relating 
to 
suspected, anticipated or completed fraudulent insurance acts is 
not liable for any damages in any civil action for furnishing the 
information if that information is furnished to or received from 
an authorized agency. 
In the absence of fraud. malice or bad 
faith. 
an insurer that furnished information to or received 
information from another insurer for the purpose of detecting. 
prosecuting or preventing fraudulent insurance acts is not liable 
for 
any 
damages 
in 
anY 
civil 
action 
for 
furnishing 
that 
information. 
Nothing in this subsection is intended to abrogate 
or modify in any way any common law or statutory privilege or 
immunity previously enjoyed by any person. 
Sec. 7. 24-A MRSA §2188 is enacted to read: 
§2188. Insurance Fraud Division 
1. 
Division estab1ished. 
The 
Insurance Fraud Division. 
referred to in this section as "the division." is established 
within the bureau. 
The division shall work in coordination with 
other bureau divisions and staff and other regulatory and law 
enforcement agencies to accomplish its duties. 
2. 
Duties. 
The duties of the division are to: 
A. 
Initiate independent inquiries and conduct independent 
investigations when the division has cause to believe that a 
fraudulent 
insurance 
act 
as 
defined 
in 
section 
2186. 
deceptive insurance practice or insurance deception may be 
or has been committed; 
B. 
Review reports 
or 
complaints 
of 
alleged fraudulent 
insurance 
acts 
as 
defined 
in 
section 
2186. 
deceptive 
insurance practices and insurance deception from federal. 
state and local law enforcement and regulatory agencies. 
persons engaged in the business of insurance and the public 
to 
determine 
whether 
the 
reports 
require 
further 
investigation and to conduct these investigations; 
C. 
Conduct independent examinations of alleged fraudulent 
insurance 
acts 
as 
defined 
in 
section 
2186. 
deceptive 
insurance practices and insurance deception and undertake 
COMM/rrEE AMENDMENT 
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COMMITTEE AMENDMENT .. A 
.. to H.P. 1394, L.D. 1990 
independent studies to determine the extent of fraudulent 
and deceptive insurance acts and practices; 
D. 
Assist the superintendent in developing and implementing 
programs to prevent fraudulent insurance acts as defined in 
section 2186 and abuse, deceptive insurance practices and 
insurance deception; 
E. 
Assist the Attorney General in the prosecution and 
prevention of insurance fraud, deceptive insurance practices 
and insurance deception; and 
F. 
Prepare 
any 
reports 
regarding 
insurance 
fraud 
and 
deception reguired by law. 
3. 
other 
law 
enforcement; 
regu1ato~ authority. 
This 
section does not: 
A. 
Preempt the authority or relieve the duty of other law 
enforcement or regulatory agencies to investigate, examine 
and prosecute suspected violations of law; 
B. 
Prevent or prohibit a person from disclosing voluntarily 
information concerning insurance fraud, deceptive insurance 
practices or insurance deception to a 
law enforcement or 
regulatory agency other than the division; or 
C. 
Limit the powers granted elsewhere by the laws of this 
State to the superintendent or the division to investigate 
and 
examine 
possible 
violations 
of 
law 
and 
to 
take 
appropriate action against wrongdoers. 
4. 
Confidentiality. 
Records that are prepared by, prepared 
at the direction of or kept in the custody of the division that 
contain investigative information are subject to the reguirements 
of Title 16, section 614, 
except that the superintendent may 
share 
information with 
an 
authorized 
agency, 
as 
defined in 
section 2187. 
Except as provided in Title 16, section 614 or 
reguired for a criminal or civil proceeding, an authorized agency 
shall hold the information in confidence and may not release the 
information to any person other than an authorized agency. 
Sec. 
8. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
ATl'OBNEY 'GENERAL, DEPARTMENT OF 
Administration - Attorney General 
0310 
The 
following 
COMMITTEE AMENDMENT 
• .. 
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COMMITTEE AMENDMENT "~,, to H.P. 1394, L.D. 1990 
Initiative: 
Provides funds for an Assistant Attorney position 
and general operating expenses to support the Insurance Fraud 
Division within the Department of Administrative and Financial 
Regulation, Bureau of Insurance. 
This position is to be funded 
by the Bureau of Insurance. 
OTHER SPECIAL REvENUE FUNDS 
POSITIONS -
LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
ATl'ORREY GENERAL, DEPARTMENT OF 
DEPARTMENT 'lUTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT 'lUTAL -
ALL FUNDS 
PROFESSIONAL AND FINANCIAL REGULATION, 
DEPARTMENT OF 
Bureau of Insurance 
0092 
2005-06 
0.000 
$0 
$0 
$0 
2005-06 
$0 
$0 
2006-07 
1.000 
$67,067 
$7,933 
$75,000 
2006-07 
$75,000 
$75,000 
Ini tiative: 
Allocates funds for one 
Public Service Manager II 
position, 
one 
Auditor 
III 
position, 
one 
Field 
Investigator 
position and one Clerk Typist III position and general operating 
expenses to establish and administer the new Insurance Fraud 
Division. 
OTHER SPECIAL REvENUE FUNDS 
POSITIONS -
LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PROFESSIONAL AND FINANCIAL REGULATION, 
DEPARTMENT OF 
DEPARTMENT 'lUTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT 'lUTAL -
ALL FUNDS 
SECTION 'lUTALS 
2005-06 
2006-07 
0.000 
4.000 
$0 
$207,653 
$0 
$75,110 
$0 
$282,763 
2005-06 
2006-07 
$0 
$282,763 
$0 
$282,763 
2005-06 
2006-07 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 1394, L.D. 1990 
cnm:R SPECIAL REVENUE FUNDS 
SECTION 'l'OTAL -
ALL FUNDS 
SUMMARY 
$0 
$357,763 
$0 
$357,763' 
This amendment is the majority report of the committee and 
replaces the bill. The amendment establishes the Insurance Fraud 
Division within the Department of Professional 
and Financial 
Regulation, Bureau of Insurance. 
The amendment requires insurers 
with knowledge or 
SUsp1c1on of fraudulent insurance acts to 
report 
those 
activities 
to 
the 
Bureau 
of 
Insurance. 
The 
amendment provides for the confidentiality of records relating to 
insurance 
fraud 
investigations 
in 
a 
manner 
similar 
to 
the 
prov1s1on 
of 
confidentiality 
under 
current 
state 
law 
for 
investigative and intelligence information in the possession of 
other law enforcement entities. 
The amendment does permit the 
Insurance Fraud Division to share investigatory information with 
certain national and international agencies. 
The amendment also 
extends 
the 
immunity 
provision 
in 
current 
law 
to 
certain 
communications 
between 
insurers 
with 
respect 
to 
fraudulent 
insurance acts. 
The amendment also adds an appropriations and allocations 
section to the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/24/06 ~ac:.. 
LD 1990 
LR3088(02) 
An Act To Create the Insurance Fraud Division within the Bureau of Insurance 
Fiscal Note for Bill as Amended by Committee Amendment ,~" 
Committee: Insurance and Financial Services 
Appropriations/Allocations 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
This bill may increase the number of civil suits filed in the court system. 
2006-07 
$357,763 
Projections 
2007-08 
$455,847 
The collection of additional filing fees may increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Projections 
2008-09 
$472,125 
The Bureau ofInsurance in the Department of Professional and Financial Regulation will require an additional 
allocation of approximately $283,000 for fiscal year 2006-07 to establish and administer the new Insurance Fraud 
Division, This estimate assumes 4 new positions and related costs in the Bureau. Also assumes the Bureau of 
Insurance will fund an Assistant Attorney General position in the Department of the Attorney General. The 
Department will require an allocation of $75,000 and the creation of one position for this purpose. The Bureau of 
Insurance believes it can fund these costs within exiting revenue balances but should this not be the case, the Bureau 
has assessment authority under existing law to support the costs of the Bureau. 
LR3088(2) - Fiscal Note - Page 1 of 1