Insurance fraud investigators get a boost under bill OK’d by House

Greater protections and power to insurance fraud investigators could be forthcoming and the government could force companies associated with fraud to pay restitution.

Rep. Bob Loonan

Sponsored by Rep. Bob Loonan (R-Shakopee), HF1443 would give the Department of Commerce authority to order restitution for the cost of a fraud investigation and expand the restitution to “attempted” fraud. Insurance companies have typically shouldered those costs, but Loonan hopes to hand it over to the “bad guys.”

Loonan said the bill “deals with the scourge of insurance fraud.”

Passed by the House 123-2 Monday, the bill next goes to the Senate where Sen. Paul Utke (R-Park Rapids) is the sponsor. Rep. Eric Lucero (R-Dayton) and Rep. Jim Newberger (R-Becker) were the lone “no” votes.

WATCH Full video of Monday's House Floor session on YouTube

The Commerce Department can now order restitution to the victim of insurance fraud, but there isn’t anything about paying insurance carriers. The bill would add insurance companies to that requirement.

Another provision would give further identity protection to mandated fraud reporters working with the Commerce Fraud Bureau. The bill includes that bureau’s agents in the definition of “peace officers” – determined by the Board of Peace Officers Standard and Training – so they can have authority applying for and executing warrants.