Current Status Bill Number:991 Ratification Number:303 Act Number:278 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19960110 Primary Sponsor:Saleeby All Sponsors:Saleeby Drafted Document Number:jic\5158jm.96 Date Bill Passed both Bodies:19960409 Date of Last Amendment:19960328 Governor's Action:S Date of Governor's Action:19960506 Subject:Insurance fraud and reporting immunity
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19960515 Act No. A278
------ 19960506 Signed by Governor
------ 19960430 Ratified R303
Senate 19960409 Concurred in House amendment,
enrolled for ratification
House 19960402 Read third time, returned to Senate
with amendment
House 19960328 Amended, read second time
House 19960327 Committee report: Favorable with 26 HLCI
amendment
House 19960220 Introduced, read first time, 26 HLCI
referred to Committee
Senate 19960215 Read third time, sent to House
Senate 19960214 Amended, read second time
Senate 19960213 Committee report: Favorable with 02 SBI
amendment
Senate 19960110 Introduced, read first time, 02 SBI
referred to Committee
View additional legislative information at the LPITS web site.
(A278, R303, S991)
AN ACT TO AMEND SECTION 38-55-530, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS UNDER THE "OMNIBUS INSURANCE FRAUD AND REPORTING IMMUNITY ACT", SO AS TO DELETE REFERENCE TO "DIVISION OF MOTOR VEHICLES" IN THE DEFINITION OF "AUTHORIZED AGENCY", ADD THE SPECIFIC NAMES OF CERTAIN STATE AGENCIES, AND INCLUDE ALL OTHER STATE BOARDS, COMMISSIONS, AND AGENCIES IN THAT DEFINITION, AND TO ADD LANGUAGE TO THE DEFINITION OF "FALSE STATEMENT AND MISREPRESENTATION"; TO AMEND SECTION 38-55-570, AS AMENDED, RELATING TO THE "OMNIBUS INSURANCE FRAUD AND REPORTING IMMUNITY ACT" AND NOTIFICATION TO THE INSURANCE FRAUD DIVISION OF THE OFFICE OF THE STATE ATTORNEY GENERAL OF KNOWLEDGE OR BELIEF OF FALSE STATEMENTS OR MISREPRESENTATIONS, SO AS TO DELETE REFERENCE TO THE "MOTOR VEHICLE DIVISION"; AND TO AMEND SECTION 38-55-580, RELATING TO THE "OMNIBUS INSURANCE FRAUD AND REPORTING IMMUNITY ACT" AND IMMUNITY FROM LIABILITY ARISING OUT OF PROVIDING INFORMATION CONCERNING FALSE STATEMENTS OR MISREPRESENTATIONS TO AN AUTHORIZED AGENCY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT IN ADDITION TO THE IMMUNITY GRANTED IN THIS SECTION, PERSONS IDENTIFIED AS DESIGNATED EMPLOYEES WHOSE RESPONSIBILITIES INCLUDE THE INVESTIGATION AND DISPOSITION OF CLAIMS RELATING TO SUSPECTED FRAUDULENT INSURANCE ACTS MAY SHARE INFORMATION RELATING TO PERSONS SUSPECTED OF COMMITTING FRAUDULENT INSURANCE ACTS WITH OTHER DESIGNATED EMPLOYEES EMPLOYED BY THE SAME OR OTHER INSURERS WHOSE RESPONSIBILITIES INCLUDE THE INVESTIGATION AND DISPOSITION OF CLAIMS RELATING TO FRAUDULENT INSURANCE ACTS UNDER CERTAIN CONDITIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Definition changed
SECTION 1. Section 38-55-530(A) of the 1976 Code, as added by Part II, Section 31A of Act 497 of 1994, is amended to read:
"(A) `Authorized agency' means any duly constituted criminal investigative department or agency of the United States or of this State; the Department of Insurance; the Department of Revenue and Taxation; the Department of Public Safety; the Workers' Compensation Commission; the State Accident Fund; the Second Injury Fund; the Employment Security Commission; the Department of Consumer Affairs; the Human Affairs Commission; the Department of Health and Environmental Control; the Department of Social Services; the Department of Health and Human Services; the Department of Labor, Licensing and Regulation; all other state boards, commissions, and agencies; the Office of the Attorney General of this State; or the prosecuting attorney of any judicial circuit, county, municipality, or political subdivision of this State or of the United States, and their respective employees or personnel acting in their official capacity."
Definition changed
SECTION 2. Section 38-55-530(D) of the 1976 Code, as added by Part II, Section 31A of Act 497 of 1994, is amended to read:
"(D) `False statement and misrepresentation' means a statement or representation made by a person that is false, material, made with the person's knowledge of the falsity of the statement, and made with the intent of obtaining or causing another to obtain or attempting to obtain or causing another to obtain an undeserved economic advantage or benefit or made with the intent to deny or cause another to deny any benefit or payment in connection with an insurance transaction and such shall constitute fraud."
Reference deleted
SECTION 3. Section 38-55-570(C) of the 1976 Code, as added by Part II, Section 31A of Act 497 of 1994, is amended to read:
"(C) Any authorized agency provided with or obtaining information relating to a suspected false statement or misrepresentation as provided for above may release or provide the information to any other authorized agency. The Department of Insurance, the Department of Revenue and Taxation, and the Department of Public Safety shall report, but not adjudicate, all cases of suspected or reported false statement or misrepresentation to the Insurance Fraud Division of the Office of Attorney General for appropriate investigation or prosecution, or both. The Workers' Compensation Commission may refer such cases as provided in Section 42-9-440."
Sharing of information; etc.
SECTION 4. Section 38-55-580 of the 1976 Code, as added by Part II, Section 31A of Act 497 of 1994, is amended to read:
"Section 38-55-580. (A) A person, insurer, or authorized agency, when acting without malice or in good faith, is immune from any liability arising out of filing reports, cooperating with investigations by any authorized agency, or furnishing other information, whether written or oral, and whether in response to a request by an authorized agency or upon their own initiative, concerning any suspected, anticipated, or completed false statement or misrepresentation when such reports or information are provided to or received by any authorized agency.
(B) Nothing herein abrogates or modifies in any way common law or statutory privilege or immunity heretofore enjoyed by any person, insurer, or authorized agency.
(C) Nothing herein limits the liability of any person or insurer who, with malice or in bad faith, makes a report of suspected fraud under the provisions of this article.
(D) In addition to the immunity granted in this section, persons identified as designated employees whose responsibilities include the investigation and disposition of claims relating to suspected fraudulent insurance acts may share information relating to persons suspected of committing fraudulent insurance acts with other designated employees employed by the same or other insurers whose responsibilities include the investigation and disposition of claims relating to fraudulent insurance acts, provided the department has been given written notice of the names and job titles of these designated employees prior to any designated employee sharing information. Unless the designated employees of the insurer act in bad faith or in reckless disregard for the rights of any insured, neither the insurer nor its designated employees are civilly liable for libel, slander, or any other relevant tort, and a civil action does not arise against the insurer or its designated employees:
(1) for any information related to suspected fraudulent insurance acts provided to an insurer; or
(2) for information related to suspected fraudulent insurance acts provided to the National Insurance Crime Bureau or the National Association of Insurance Commissioners.
Provided, however, that the qualified immunity against civil liability conferred on any insurer or its designated employees shall be forfeited with respect to the exchange or publication of any defamatory information with third persons not expressly authorized by subsection (D) to share in such information."
Time effective
SECTION 5. This act takes effect upon approval by the Governor.
Approved the 6th day of May, 1996.