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Bill

A 851

Provides for insurance premium reductions for successful completion of a fraud prevention course

2025 Regular Session Introduced by Ken Blankenbush and 1 co-sponsor

Bill Summary: A 851 - Insurance Premium Reductions for Fraud Prevention Course Purpose and IntentThis bill aims to incentivize consumers to take fraud prevention courses by providi

REFERRED TO INSURANCE
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Bill Summary · A 851

Bill Summary: A 851 - Insurance Premium Reductions for Fraud Prevention Course

Purpose and Intent

This bill aims to incentivize consumers to take fraud prevention courses by providing them with reductions on their insurance premiums. The goal is to empower individuals to better protect themselves against insurance fraud, which can have significant financial and personal impacts.

Key Provisions

  • Requires insurance companies to offer premium discounts to policyholders who successfully complete an approved fraud prevention course.
  • Directs the Department of Financial Services to approve and maintain a list of eligible fraud prevention courses that qualify for the premium discounts.
  • Specifies that the premium discount must be at least 5% of the total policy premium and can be applied to any type of insurance coverage.
  • Mandates that insurance companies provide clear disclosure to consumers about the availability of the fraud prevention course discount.
  • Gives the Department of Financial Services the authority to promulgate regulations to implement and enforce the provisions of the bill.

Affected Parties

  • Consumers holding insurance policies of any kind (e.g. auto, homeowner's, life, health, etc.)
  • Insurance companies operating in the state
  • Providers of fraud prevention education courses

Procedural and Timeline Aspects

  • The bill was introduced on January 9, 2024 and has been referred to the Insurance committee.
  • If enacted, the law would take effect 180 days after being signed into law, giving insurers and course providers time to prepare.
  • The Department of Financial Services would have 90 days after the effective date to establish the list of approved fraud prevention courses.

Overall, this bill represents a proactive approach to empowering consumers and reducing the impacts of insurance fraud through education and financial incentives. By making fraud prevention courses more accessible and rewarding, it aims to strengthen consumer protections and increase insurance affordability.

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

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