Senate Bill No. 270

Introduced By _______________________________________________________________________________



A Bill for an Act entitled: "An Act expanding insurance fraud to cover an act of actual fraud or constructive fraud by an insurer or purported insurer against an insured or prospective insured; and amending section

33-1-1202, MCA."



Be it enacted by the Legislature of the State of Montana:



Section 1.  Section 33-1-1202, MCA, is amended to read:

"33-1-1202.   Insurance fraud. (1) A person commits the act of insurance fraud when the person:

(1)(a)  for the purpose of obtaining any money or benefit, presents or causes to be presented to any insurer, purported insurer, broker, or agent any written or oral statement, including computer-generated documents, containing false, incomplete, or misleading information concerning any fact or thing material to, as part of, or in support of a claim for payment or other benefit pursuant to an insurance policy;

(2)(b)  assists, abets, solicits, or conspires with another to prepare or make any written or oral statement containing false, incomplete, or misleading information concerning any fact that is intended to be presented to any insurer or purported insurer or in connection with, material to, or in support of any claim for payment or other benefit pursuant to an insurance policy or contract;

(3)(c)  presents or causes to be presented to or by an insurer, purported insurer, broker, or agent a materially false or altered application of insurance;

(4)(d)  accepts premium money knowing that coverage will not be provided;

(5)(e)  as a health care provider, submits a false or altered bill or report of physical condition to an insurer; or

(6)(f)  offers or accepts a direct or indirect inducement to file a false statement of claim with the intent of deceiving an insurer.

(2) An insurer, purported insurer, broker, or agent commits the act of insurance fraud by committing actual fraud, as defined in 28-2-405, or constructive fraud, as defined in 28-2-406, against an insured or prospective insured."

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