HOUSE BILL No. 5758


     April 23, 1998, Introduced by Reps. Griffin, Frank, Jansen and Kukuk and referred to the Committee on Insurance.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   (MCL 500.100 to 500.8302) by adding section 4513; and to repeal

   acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 4513.  (1) AN INSURANCE FRAUD TASK FORCE IS ESTABLISHED

 2    AND SHALL CONSIST OF THE FOLLOWING:

 3         (A) THE COMMISSIONER OF INSURANCE OR HIS OR HER DESIGNEE.

 4         (B) THE DIRECTOR OF THE DEPARTMENT OF STATE POLICE OR HIS OR

 5    HER DESIGNEE.

 6         (C) THE ATTORNEY GENERAL OR HIS OR HER DESIGNEE.

 7         (D) FOUR REPRESENTATIVES APPOINTED BY THE GOVERNOR BY

 8    JANUARY 1, 1999 AS FOLLOWS:

 9         (i) ONE REPRESENTATIVE OF A CITY, VILLAGE, OR TOWNSHIP

10    POLICE DEPARTMENT.


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 1         (ii) ONE REPRESENTATIVE OF A COUNTY SHERIFF'S DEPARTMENT.

 2         (iii) ONE REPRESENTATIVE OF A UNITED STATES CRIMINAL INVES-

 3    TIGATIVE DEPARTMENT OR AGENCY.

 4         (iv) ONE REPRESENTATIVE OF A PROSECUTING AUTHORITY OF A

 5    CITY, VILLAGE, TOWNSHIP, COUNTY, OR STATE.

 6         (E) SIX INSURERS APPOINTED BY THE COMMISSIONER BY JANUARY 1,

 7    1999 REPRESENTING LARGE, MEDIUM, AND SMALL PROPERTY, CASUALTY,

 8    AND DISABILITY INSURERS IN THIS STATE.

 9         (2) THE INSURANCE FRAUD TASK FORCE SHALL DO ALL OF THE

10    FOLLOWING:

11         (A) INVESTIGATE THE ISSUE OF ORGANIZED INSURANCE FRAUD AND

12    METHODS TO COMBAT ORGANIZED INSURANCE FRAUD.

13         (B) EXAMINE WAYS TO UNITE THE RESOURCES OF THE INSURANCE

14    INDUSTRY WITH THE APPROPRIATE COMPONENTS OF FEDERAL AND STATE

15    CRIMINAL JUSTICE SYSTEMS SO THAT ORGANIZED INSURANCE FRAUD

16    SCHEMES ARE IDENTIFIED AND THOROUGHLY INVESTIGATED AND THE PERPE-

17    TRATORS ARE PROSECUTED IN THE BEST INTERESTS OF JUSTICE.

18         (C) EXAMINE THE CONCEPT OF CREATING A PRIVATE AGENCY TO

19    ASSIST IN COMBATING ORGANIZED INSURANCE FRAUD AND WAYS TO FUND

20    THE AGENCY.

21         (D) REPORT TO THE GOVERNOR AND THE LEGISLATURE BY NO LATER

22    THAN JANUARY 1, 2001 ON ITS FINDINGS AND RECOMMENDATIONS.

23         (3) THIS SECTION IS REPEALED JANUARY 1, 2001.











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