Assigned to BI                                                                                                                             FOR COMMITTEE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2435

 

insurance; fraud unit; confidential information

(NOW:  insurance; confidential information; fraud unit)

 

Purpose

 

            Requires the Director of the Department of Insurance (DOI) to keep the identity of an informant in a fraud unit investigation confidential.

 

Background

 

The DOI fraud unit, established July 1, 1994, works in conjunction with the Department of Public Safety (DPS) to investigate fraudulent practices against insurers. Insurers are required by law to refer suspected insurance fraud to the fraud unit. The fraud unit is authorized to obtain and serve search and arrest warrants in the course of fraud investigations. During the course of an investigation, the Director of DOI also can subpoena or request papers, documents or reports. All information obtained by the Director is privileged and confidential until the investigation is complete, at which point it may be turned over to the Attorney General or a county attorney for criminal prosecution.

 

This measure requires the Director to keep the identity of an informant in a fraud unit investigation confidential and requires the Director to notify an insurer of public record requests for documents or subpoenas.

 

            There is no anticipated fiscal impact to the state general fund associated with this measure.

 

Provisions

 

1.      Requires the Director to keep confidential any information that might identify an informant in a fraud unit investigation.

 

2.      Allows the Director to share information that might identify an informant with a law enforcement agency, the Attorney General or a county attorney for the purpose of a criminal investigation or prosecution.

 

3.      Requires the Director to notify an insurer, who referred information to the fraud unit, of any public record request for documents or subpoenas.

 

4.      Exempts the Director from notifying an insurer of a public record request or a subpoena for documents if the Attorney General or a county attorney made the request.

 

5.      Makes technical changes.

 

6.      Provides for a general effective date.

 

House Action

 

FII                   3/20/02            DPA/SE           9-0-0-1

3rd Read           4/2/02                                      54-1-5-0

 

 

Prepared by Senate Staff

April 9, 2002