Hawaii Legislature Wants to Beef Up Insurance Fraud

Hawaii is hoping to step up its insurance fraud fighting efforts, with two bills up for consideration in the 2011 legislature.

HB 751 would strengthen existing fraud provisions by requiring insurers to cooperate with the fraud bureau in order to receive restitution. Additionally, any one who provides information to the fraud bureau for an investigation cannot be subject to civil liability.

This bill incorporates provisions of the National Conference of Insurance model insurance fraud act, and is identical to a bill that failed last year. The goal is to ensure that insurers work with the fraud bureau and law enforcement during investigations and prosecutions, according to the Coalition Against Insurance Fraud.

Another Hawaii bill, HB 386/SB1196, would add workers’ compensation schemes to the fraud bureau’s purview. Previously, the fraud bureau only could investigate potential auto fraud, but that was expanded several years ago to include all lines of insurance except for workers’ compensation insurance fraud. The new bill would allow the fraud bureau to also investigate potential workers’ comp fraud.