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Bill

Bill

S 4225

Broadens scope of information sharing and civil immunity therefor, related to insurance fraud.

2024-2025 Regular Session Introduced by Joe Lagana and 1 co-sponsor

Expands insurance fraud information-sharing between insurers and provides civil immunity protections for good-faith fraud reporting, potentially reducing fraud but raising consumer privacy concerns.

Introduced in the Senate, Referred to Senate Commerce Committee
#insurance
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WeVote Research Nonpartisan
Bill Summary · S 4225

Legislative bill overview

S 4225 expands what information insurance companies and related entities can share with each other regarding suspected fraud, and provides civil liability protections for those who report suspected insurance fraud in good faith. The bill broadens the categories of parties who can participate in information sharing and protects them from lawsuits stemming from their fraud reports.

Why is this important

Insurance fraud costs the industry billions annually, with costs ultimately passed to consumers through higher premiums. Stronger information-sharing protections could help insurers identify fraud rings and repeat offenders more effectively, potentially reducing fraudulent claims. However, the scope of protections matters significantly—overly broad immunity could discourage legitimate challenges to claim denials or enable insurers to share sensitive personal information without meaningful oversight.

Potential points of contention

  • Scope of immunity: How broadly "good faith" reporting is defined could allow insurers to share information aggressively with minimal accountability for errors or discriminatory use
  • Consumer privacy protections: Expanded information sharing between insurers may involve personal health, financial, or claims history data without clear consent or limitation standards
  • Balance of power: Strong anti-fraud measures may disadvantage legitimate policyholders disputing denied claims, particularly if insurers gain broad protections while claimants face higher evidentiary burdens

Compiled from official sources — confirm details with the bill’s official record.

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