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1996 SESSION

962298633
SENATE JOINT RESOLUTION NO. 36
Senate Amendments in [ ] -- February 9, 1996
Establishing a joint subcommittee to study whether an insurance fraud bureau should be established in the Commonwealth.
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Patrons-- Colgan and Chichester
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Referred to the Committee on Rules
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WHEREAS, it is estimated that fraudulent claims result in losses to insurers of $20,000,000 each year, and that amount is reflected in the rates established for the payment of premiums by policyholders; and

WHEREAS, the problem of fraud has become so prevalent that insurers have established special investigative units to identify fraudulent claims; and

WHEREAS, the problem of fraudulent claims is on the increase; and

WHEREAS, thousands of claims made under policies issued in the Commonwealth of Virginia are investigated as potential fraud claims each year; and

WHEREAS, local law enforcement authorities are burdened with the investigation of a multitude of crimes and are sometimes unable to provide investigators with expertise in insurance fraud; and

WHEREAS, insurance fraud may be a result of organized activity involving multiple claims and multiple jurisdictions; and

WHEREAS, many other states have established fraud bureaus within their insurance regulatory agencies; now, therefore, be it

RESOLVED by the Senate, the House of Delegates concurring, That a joint subcommittee be established to study whether an insurance fraud bureau should be established in the Commonwealth, what classes or lines of insurance should be subject to investigation by such bureau, what powers should be granted fraud bureau investigators, and how such bureau should be funded. The joint subcommittee shall consist of thirteen members: [ four members from the House of Delegates, to be appointed by the Speaker of the House; three members from the Senate, to be appointed by the Senate Committee on Privileges and Elections; one representative of the Office of the Secretary of Public Safety; one representative of the State Corporation Commission; two representatives of property and casualty insurers; one representative of life and health insurers; and one representative designated by the Association of Commonwealth Attorneys. three members from the Senate, to be appointed by the Senate Committee on Privileges and Elections; four members from the House of Delegates, to be appointed by the Speaker; the Secretary of Public Safety or his designee; one representative of the State Corporation Commission and one representative of property and casualty insurers, to be appointed by the Senate Committee on Privileges and Elections; one representative of property and casualty insurers, one representative of life and health insurers, and one representative of the Association of Commonwealth Attorneys upon its recommendation, to be appointed by the Speaker. ]

The direct costs of this study shall not exceed $6,600.

The Division of Legislative Services shall provide staff support for the study. Technical assistance shall be provided by the [ Office of the ] Secretary of Public Safety [ or his designee ] and the State Corporation Commission. All agencies of the Commonwealth shall provide assistance to the joint subcommittee, upon request.

The joint subcommittee shall complete its work in time to submit its findings and recommendations to the Governor and the 1997 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for processing legislative documents.

Implementation of this resolution is subject to subsequent approval and certification by the Joint Rules Committee. The Committee may withhold expenditures or delay the period for the conduct of the study.