Section 22-3225.9 (Section 125I of Enrolled D.C. Act 12-595) Section 125I. Insurance fraud prevention and detection. (a) Within 6 months of the effective date of this act [October 27, 1999], every insurer licensed in the District shall submit to the Department of Insurance and Securities Regulation, an insurance fraud prevention and detection plan (“plan”). The plan shall indicate specific procedures for the accomplishment of the following: (1) Prevention, detection, and investigation of insurance fraud; (2) Orientation of employees on insurance fraud prevention and detection; (3) Employment of fraud investigators; (4) Reporting of insurance fraud to the appropriate authorities; and (5) Collection of restitution for financial loss caused by insurance fraud. (b) The Commissioner may review the plan for compliance with this section and may order reasonable modification or request a summary of the plan. The Commissioner may establish by regulation a fine for an insurer failing to comply with the plan. The plan shall not be deemed a public record for the purposes of any public records or Title II of the District of Columbia Administrative Procedure Act, effective March 25, 1977 (D.C. Law 1-96); D.C. Code Sec. 1-1521 et seq.). (c) Notwithstanding any other provisions of law, an insurer who fails to submit an insurance fraud prevention and detection plan, or the warning provision required by subsection (d) of this section shall be subject to a fine of $500 per day, not to exceed $25,000. New Insurers: Within six months of the effective date of the issuance date of your Certificate of Authority, you shall submit to the Department of Insurance and Securities Regulation, an insurance fraud prevention and detection plan. Bulletin 99-FR-001-5/1 Attachment 3 Recommendations for the Development and Application of the D.C. Insurance Fraud Prevention and Detection Plan I. Anti-fraud Plan Components: A. Prevention, Detection, and Investigation: D.C. Code 22-3825.9(a)(1) The anti-fraud plan should contain specific procedures for the prevention, detection and investigation of all areas of insurance fraud. Such procedures should be prepared, published, and maintained to assist your Special Investigation Unit (hereinafter referred to as “SIU”) or your point of contact. B. Orientation and education of employees on insurance fraud prevention and detection: D.C. Code 22-3825.9 (a)(2) The anti-fraud plan should contain specific procedures for an orientation, education, and training program for your employees. It is imperative that your employees have the skills to recognize and investigate all insurance fraud. To increase understanding of insurance fraud, your new and existing employees should undergo an ongoing training program on the multi-dimensional nature of insurance fraud. The program should include a minimum of 2-hour sessions on a continuing education basis.