TDI Issues Reminder to Report Fraud

The Texas Department of Insurance issued a reminder to insurance professionals in Texas that they have a duty to report insurance fraud.

TDI’s bulletin stated: “Important and significant changes regarding the duty to report fraudulent insurance acts in the state of Texas have been made by the 79th Legislature, Regular Session, through House Bill 2388. The Texas Insurance Code, Chapter 701.051 (Former Article 1.10D, Sec. 4) has been amended effective September 1, 2005. The new statute requires a person or entity who makes a determination or reasonably suspects that a fraudulent insurance act has been committed or is about to be committed to make a report to the Texas Department of Insurance Fraud Unit no later than the 30th day after making such determination.”

Members of organizations primarily dedicated to the detection, investigation, and prosecution of insurance fraud may authorize the organization to file reports with the TDI Fraud Unit on their behalf. The reporting organization must meet the requirements set out in Texas Insurance Code §701.051(c) as amended. The person or entity retains any liability resulting from the failure of the organization to properly report fraud as required by the new statutory provisions.

Reports of fraud should be made in writing and may be transmitted to the fraud unit via the agency’s online fraud reporting system, by mail, through the National Association of Insurance Commissioners’ online portal, or through an authorized organization pursuant to §701.051(c).

To submit a report of fraud online directly to the TDI Fraud Unit or to download a Fraud Report Form, visit www.tdi.state.tx.us/fraud.

For more information, contact Harry Harris at harry.harris@tdi.state.tx.us or at (512) 463-6492.