33-1-1302. Insurance, viatical settlement, medical care discount card, and pharmacy discount card administrative or civil fraud -- insurer.
435 words·~2 min read·
/mt/title-33/chapter-1/part-13/33-1-1302·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
33-1-1302 . Insurance, viatical settlement, medical care discount card, and pharmacy discount card administrative or civil fraud -- insurer.
(1)A person commits the act of insurance, viatical settlement, medical care discount card, or pharmacy discount card fraud when:
(a)in the course of offering or selling insurance, a medical care discount card, or a pharmacy discount card, the person misrepresents a material fact, known to the person to be untrue or made with reckless indifference as to whether it is true, with the intention of causing another person to rely upon the misrepresentation to that relying person's detriment; or
(b)with respect to a viatical settlement, the person violates the provisions of 33-1-1304 .
(2)A person commits the act of insurance fraud or viatical settlement fraud by engaging in any transaction, act, practice, course of business, or course of dealing that involves a violation of insurable interest laws.
(3)The commissioner may, after having conducted a hearing pursuant to 33-1-701 , impose the penalties provided for in 33-1-317 for a violation of 33-1-1304 or this section. Failure to pay a fine under this section results in a lien upon the assets and property of the person as provided in 33-1-318 (3).
(4)In addition to any penalty provided for in 33-1-317 , the commissioner may require a person regulated under this title who commits insurance, viatical settlement, medical care discount card, or pharmacy discount card fraud to make full restitution to the victim for all financial losses sustained as a result of the fraud with interest of 10% a year from the date of the fraud plus any costs and reasonable attorney fees, less the amount of any income, refund, or other benefit received by the victim from the insurance, viatical settlement, medical care discount card, or pharmacy discount card.
(5)The commissioner may require a person who commits a violation of this part to make full restitution to any person who may have sustained any losses as a result of the fraud with interest from the date of the loss plus any costs and reasonable attorney fees. The interest rate must be calculated as of the date of the order pursuant to 25-9-205 .
(6)An insurer, insurance producer, or other person who sustained any losses and who was awarded restitution may bring suit to recover those sums, including any attorney fees, interest at the rate provided in 25-9-205 , and costs incurred in obtaining a judgment.
(7)Failure of a person to pay any amount ordered under this section constitutes a forfeiture of the right to do business in this state.