§ 27-1-3-22 — Fraudulent insurance act; definition; liability

(a) As used in this section, "fraudulent
insurance act" means:
(1) the preparation or presentation of a written statement as part
of, or in support of:
(A) a fraudulent application for the issuance or rating of a
policy of commercial insurance; or
(B) a fraudulent claim under a policy of commercial or personal
insurance; or
(2) the concealment, for the purpose of misleading, of information
concerning any fact material to an application or claim described
in subdivision (1).
(b) As used in this section, "fraudulent insurance act" includes the
act or omission of a person who, knowingly and with intent to defraud,
does any of the following:
(1) Presents, causes to be presented, or prepares with knowledge
or belief that it will be presented, to or by an insurer, a reinsurer,
a purported insurer or reinsurer, a broker, or an agent of an
insurer, reinsurer, purported insurer or reinsurer, or broker, an
oral or written statement that the person knows to contain
materially false information as part of, in support of, or
concerning any fact that is material to:
(A) an application for the issuance of an insurance policy;
(B) the rating of an insurance policy;
(C) a claim for payment or benefit under an insurance policy;
(D) premiums paid on an insurance policy;
(E) payments made in accordance with the terms of an
insurance policy;
(F) an application for a certificate of authority;
(G) the financial condition of an insurer, a reinsurer, or a
purported insurer or reinsurer; or
(H) the acquisition of an insurer or a reinsurer;
or conceals any information concerning a subject set forth in
clauses (A) through (H).
(2) Solicits or accepts new or renewal insurance risks by or for an
insolvent insurer, reinsurer, or other entity regulated under this
title.
(3) Removes or attempts to remove:
(A) the assets;
(B) the record of assets, transactions, and affairs; or
(C) a material part of the assets or the record of assets,
transactions, and affairs;
of an insurer, a reinsurer, or another entity regulated under this
title, from the home office, other place of business, or place of
safekeeping of the insurer, reinsurer, or other regulated entity, or
conceals or attempts to conceal from the department assets or
records referred to in clauses (A) through (C).
(4) Diverts, attempts to divert, or conspires to divert funds of an
insurer, a reinsurer, another entity regulated under the Indiana
Code, or other persons, in connection with any of the following:
(A) The transaction of insurance or reinsurance.
(B) The conduct of business activities by an insurer, a reinsurer,
or another entity regulated under this title.
(C) The formation, acquisition, or dissolution of an insurer, a
reinsurer, or another entity regulated under this title.
(c) A person who acts without malice, fraudulent intent, or bad faith
is not subject to civil liability for filing a report or furnishing, orally or
in writing, other information concerning a suspected, anticipated, or
completed fraudulent insurance act if the report or other information is
provided to or received from any of the following:
(1) The department or an agent, an employee, or a designee of the
department.
(2) Law enforcement officials or an agent or employee of a law
enforcement official.
(3) The National Association of Insurance Commissioners.
(4) Any agency or bureau of federal or state government
established to detect and prevent fraudulent insurance acts.
(5) Any other organization established to detect and prevent
fraudulent insurance acts.
(6) An agent, an employee, or a designee of an entity referred to
in subdivisions (3) through (5).
(d) This section does not abrogate or modify in any way any
common law or statutory privilege or immunity.

Legislative History

As added by P.L.159-1986, SEC.2. Amended by P.L.121-1992, SEC.1.