HB2435 - 452R - House Bill Summary

House of Representatives

HB 2435

insurance; fraud unit; confidential information

Sponsors: Representatives Poelstra, Kraft: Cooley, Hanson et al.

W/D	Committee on Judiciary
dpA S/E	Committee on Financial Institutions and Insurance
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2435 as introduced removes the 10-year time limit protecting privileged and confidential materials relating to an investigation by the Department of Insurance Fraud Unit.

Current Status

HB 2435 passed out of the Financial Institutions and Insurance Committee with a strike-everything amendment that would keep information relating to fraud investigations confidential, but provide access to law enforcement officials, the Attorney General or county attorney. The director would be required to notify an insurer of any request or subpoena for documents. The Financial Institutions and Insurance Committee amendment was adopted in the Committee of the Whole.

History

The Insurance Department Fraud Unit was established on July 1, 1994 to investigate insurance fraud. Any prosecution of criminal cases resulting from the investigations conducted by the fraud unit is handled by the Arizona Attorney General and a county attorney. The Director of the Department of Insurance may request the submission of papers, documents, reports or other evidence relating to an investigation of any act or practice of fraud. The Director may also issue subpoenas in such an investigation.

A strike-everything amendment will be offered to HB 2435 with the following provisions:

§ Stipulates that the Director may keep the identity of an informant confidential, as well as any information that might identify an informant.

§ Makes the director notify an insurer of any record request or subpoena for documents, materials, or other information referred to the fraud unit unless the subpoena is issued by the Attorney general or a county attorney.

§ Authorizes a law enforcement agency, the Attorney General or a county attorney to access information including the identity of an informant, for the purpose of a criminal investigation or prosecution.

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§ 45th Legislature