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                                                                  H.B. No. 2388




AN ACT

relating to insurance fraud reporting requirements.                           
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 701.051, Insurance Code, is amended to 
read as follows:  
	Sec. 701.051.  DUTY TO REPORT.  (a)  Not later than the 30th 
day after the date the person makes the determination or reasonably 
suspects that [A person who determines] a fraudulent insurance act 
has been or is about to be committed in this state, the person:
		(1)  shall report the information in writing to the 
insurance fraud unit of the department, in the format prescribed by 
the fraud unit or by the National Association of Insurance 
Commissioners; and
		(2)  may also report the information to another [or an] 
authorized governmental agency [not later than the 30th day after 
the date the person makes the determination].
	(b)  A report made to [one authorized governmental agency or] 
the insurance fraud unit [department] constitutes notice to each 
other authorized governmental agency [and the department].
	(c)  A person who is a member of an organization primarily 
dedicated to the detection, investigation, and prosecution of 
insurance fraud fully complies with the person's obligations under 
Subsection (a) by authorizing the organization to report on the 
person's behalf information required to be reported under 
Subsection (a).  The person retains any liability resulting from 
the failure of the organization to report in a manner that complies 
with Subsection (a).
	SECTION 2.  Section 701.109, Insurance Code, is amended to 
read as follows:  
	Sec. 701.109.  REQUEST FOR INVESTIGATION BY INSURER.  (a)  
An insurer who conducts [must complete] an independent
investigation of suspected insurance [claim] fraud is not required 
to complete that investigation [and draft a report of the insurer's 
findings] before requesting that the commissioner conduct an 
investigation.
	(b)  When requesting the commissioner to conduct an 
investigation, the [The] insurer shall draft a report of the 
insurer's findings and [must] submit the report and any [the] 
related investigation file to the commissioner as soon as 
practicable on the conclusion [as part] of the insurer's 
independent [request that the commissioner conduct an] 
investigation.
	SECTION 3.  Section 701.052(f), Insurance Code, is repealed.                   
	SECTION 4.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 2388 was passed by the House on May 
13, 2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 2388 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor