FRANKFORT, Ky. — Legislation which would create a new range of penalties for those who have committed insurance fraud is now in the Senate for consideration.
Penalties in House Bill 323, sponsored by Rep. Steve Riggs, D-Louisville, would be based on the amount of fraud that has been committed. Felony penalty levels would be defined for insurance fraud ranging from $10,000 to $1,000,000 or more, with misdemeanor penalties for fraud of lesser amounts also defined.
The bill passed the House 83-0 on Friday.
“You don’t have to take my word for it that it (insurance fraud) is a problem in Kentucky,” said Riggs as he presented the bill on the House floor last Friday. The National Insurance Crime Bureau has placed Kentucky as a top ten state for insurance fraud, Riggs said.
Victims of insurance fraud, and their insurers, would also be able to seek compensation in civil court for their damages under HB 323, which is another change to current law, added Riggs.
Rep. Jason Nemes, R-Louisville, also spoke of the importance the legislation on the House floor.
“It gets the whole system, hopefully, focused on prosecuting and taking these issues seriously,” Nemes said.