ARIZONA STATE SENATE
Phoenix, Arizona
FACT SHEET FOR H.B. 2618
Purpose
Increases from a class 1 misdemeanor to a class 6 felony the penalty for unlawful solicitation
of a tort victim and makes it a class 6 felony to act as, or use, a runner, capper or steerer for any
purpose.
Background
Laws 1998, Chapter 228 created the crime of unlawful solicitation of a tort victim at the scene
of an accident. This bill increases the penalty and further proscribes related activities.
Currently a variety of fraudulent insurance practices are crimes but intent to injure, defraud
or deceive an insurer is required. H.B. 2618 eliminates that degree of intent. One of the areas to
which this applies is the use of runners, cappers or steerers to provide fraudulent insurance
statements. Arizona statute defines runners, cappers and steerers as those who procure clients for
others who intend to perform or obtain services or benefits under a contract of insurance or who
intend to assert a claim against an insured.
The State Bar, Farmers Insurance, and Fairness and Accountability in Insurance Reform all
spoke in support of H.B. 2618 in the House while Progressive Insurance Company spoke in
opposition.
It is possible the state will realize a positive fiscal impact inasmuch as a misdemeanor violation
is being increased to a felony violation. Class 1 misdemeanors carry a maximum fine of $2,500 for
individuals and $20,000 for enterprises while felonies carry a potential fine of $150,000 for individuals
and $1,000,000 for enterprises. A 70 percent surcharge is also added to both misdemeanor and
felony fines.
Provisions
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BI 2/16/99 DP 5-0-0-1
3rd Read 3/10/99 36-23-1-0
Prepared by Senate Staff
March 18, 1999
insurance fraud
House Action
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