ME SB 572 convenes a working group to evaluate potential regulation of the vehicle towing industry and the impact on state agencies and industries, stating that deceptive, irresponsible and predatory towing practices impose financial burdens and logistical hardships on those who rely on their vehicles for everyday use and that the towing industry affects many different industries and state agencies.
Date introduced: 3/28/2025
Key Sponsor: Timothy Nangle
Committee: Joint Committee on Transportation.
Title 24-A: MAINE INSURANCE CODE
Chapter 23: TRADE PRACTICES AND FRAUDS
§2186. Insurance fraud prevention
Reporting of fraudulent insurance acts. Fraudulent insurance acts must be reported in accordance with this subsection.
A. An insurer shall, annually on or before March 1st or within any reasonable extension of time granted by the superintendent, file with the superintendent a report relating to fraudulent insurance acts that the insurer knew or reasonably believed had been committed during the previous calendar year. The report must contain information required by the superintendent in the manner prescribed by the superintendent. The information must be reported on an aggregate basis and may not contain any information identifying any individuals or entities. The superintendent shall adopt by January 1, 1999 rules necessary to define the information that must be reported. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II‑A.
4. Reporting of fraudulent insurance acts. Fraudulent insurance acts must be reported in accordance with this subsection. A. An insurer shall, annually on or before March 1st or within any reasonable extension of time granted by the superintendent, file with the superintendent a report relating to fraudulent insurance acts that the insurer knew or reasonably believed had been committed during the previous calendar year. The report must contain information required by the superintendent in the manner prescribed by the superintendent. The information must be reported on an aggregate basis and may not contain any information identifying any individuals or entities. The superintendent shall adopt by January 1, 1999 rules necessary to define the information that must be reported. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II-A. B. On the July 1st following the filing of the initial reports required by paragraph A, and annually thereafter, the superintendent shall report to the joint standing committee of the Legislature having jurisdiction over insurance matters. The report must include aggregate information detailing the fraudulent insurance activity experienced by insurers in this State. Chapter 920: REPORTING OF FRAUDULENT INSURANCE ACTS 1. Authority This Rule is adopted pursuant to the authority of 24-A M.R.S.A. §§ 212 and 2186, sub-§4, paragraph A. 2. Purpose Title 24-A M.R.S.A. §2186, sub-§4, paragraph A requires all insurers to annually, on or before March 1, file with the Superintendent a report relating to fraudulent insurance acts that the insurer knew or reasonably believed had been committed during the previous calendar year. This rule prescribes the form of the report which is required to be filed. 3. Definitions For purposes of this Rule, the following words and terms have the following meanings: A. “Fraudulent Insurance Act” has the same meaning as in 24-A M.R.S.A. §2186, sub-§1, paragraph A; and B. “Insurer” has the meaning set forth in 24-A M.R.S.A. §2186 sub-§1, paragraph B. 4. Format of Report of Fraudulent Insurance Acts The annual report by all insurers licensed to do business in Maine shall be in the format of attachment A. The report shall be filed by all insurers reporting premiums written in Maine in the preceding calendar year. All insurers are encouraged to report electronically through the web site of the Bureau of Insurance. In the alternative the report may be forwarded by disk or by hard copy. 5. Effective Date This rule is effective February 23, 1999. State of Maine Bureau of Insurance Transmittal Form Maine Fraud and Abuse Annual Report For Year Ending December 31, _______ Due March 1 ALTERNATIVE/CONSOLIDATED REPORTING BY INSURER GROUP In the alternative to individual insurer reporting, insurers may elect to report on a consolidated group basis. Group Name: NAIC #s of reporting insurers: Names of Insurers Reporting on a consolidated basis: Company Contact Person:________________________________ Telephone #_______________________________________ Company Name: NAIC #: Company Contact Person:____________________________ Telephone #___________________________________ Number of cases by category: Claimant May Have: 1. Faked property damage 2. Inflated financial loss 3. Faked/exaggerated injury 4. Staged accident/injury 5. Been known to file suspect claims, including faking, exaggerating, or extending total or partial disability 6. Other Legal Provider May Have: 7. Hired or paid cappers/chasers to recruit clients 8. Charged inconsistent with services provided 9. Other Medical Provider May Have: 10. Provided an inaccurate/incomplete history 11. Billed for services not provided 12. Upcoding or billing for excessive treatments 13. Unbundling 14. Received compensation for referral to medical or legal providers 15. Hired or paid cappers/chasers to recruit clients 16. Fabricated services 17. Provided an inaccurate/incomplete history 18. Operated without a license 19. Other Other Person or Entity May Have: 20. Received/paid compensation for referral 21. Fabricated services 22. Charged inconsistent with services provided 23. Provided an inaccurate/incomplete history, or submitted false or inaccurate information to obtain an insurance policy or to reduce an insurance premium 24. Other 25. Total number of suspected fraud claims by line of business: Auto Worker Comp General Liability Life Health (including Medicare/Medicaid) Marine Property Other 26. Total number of suspected fraud claims by type of insurance: Personal Commercial 27. Number of cases reported/referred to law enforcement agency? County Attorney’s Office U.S. Attorney’s Office Other Law Enforcement Workers’ Compensation Board Abuse and Fraud Unit NICB Other, including U.S. Postal Authorities 28. Amount of money not paid on suspected fraudulent cases: Please complete report on an annual basis and return to: State of Maine Bureau of Insurance 34 State House Station Augusta ME 04333 Electronic reporting is also acceptable and information regarding the electronic submission of this form will be made available on the agency web site at http://www.state.me.us/ pfr/ins/inshome2.htm.
5. Insurer antifraud plans. Within 6 months of the effective date of this Act, every insurer writing direct insurance shall prepare and implement an antifraud plan. This subsection does not apply to any agency, producer or other person acting on behalf of an insurer. The superintendent may review an insurer’s antifraud plan to determine if the plan complies with the requirements of this subsection. The antifraud plan must outline specific procedures, appropriate to the lines of insurance the insurer writes in the State, to: A. Prevent, detect and investigate all forms of insurance fraud; B. Educate appropriate employees on the antifraud plan and fraud detection; C. Provide for the hiring of or contracting for fraud investigators; and D. Report insurance fraud to appropriate law enforcement and regulatory authorities in the investigation and prosecution of insurance fraud.
3. Fraud warning required. Fraud warnings are required in accordance with the following. A. All applications and claim forms for insurance used by insurers in this State, regardless of form of transmission, must contain the following statement or a substantially similar statement permanently affixed to the application or claim forms: “It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purposes of defrauding the company. Penalties may include imprisonment, fines or a denial of insurance benefits.” B. The lack or omission of the statement required in paragraph A does not constitute a defense in any criminal prosecution or civil action for a fraudulent insurance act. C. This subsection applies to all insurers except reinsurers. The statement required in paragraph A must be included in all applications and claim forms filed and approved for use by the superintendent on or after January 1, 1999.
5. Insurer antifraud plans. Within 6 months of the effective date of this Act, every insurer writing direct insurance shall prepare and implement an antifraud plan. This subsection does not apply to any agency, producer or other person acting on behalf of an insurer. The superintendent may review an insurer’s antifraud plan to determine if the plan complies with the requirements of this subsection. The antifraud plan must outline specific procedures, appropriate to the lines of insurance the insurer writes in the State, to: A. Prevent, detect and investigate all forms of insurance fraud; B. Educate appropriate employees on the antifraud plan and fraud detection; C. Provide for the hiring of or contracting for fraud investigators; and D. Report insurance fraud to appropriate law enforcement and regulatory authorities in the investigation and prosecution of insurance fraud.
A. “Fraudulent insurance act” means any of the following acts or omissions when committed knowingly and with intent to defraud: (7) Attempting to commit, aiding or abetting in the commission of, or conspiring to commit the acts or omissions described in this subsection.
A. “Fraudulent insurance act” means any of the following acts or omissions when committed knowingly and with intent to defraud: (7) Attempting to commit, aiding or abetting in the commission of, or conspiring to commit the acts or omissions described in this subsection.
A. “Fraudulent insurance act” means any of the following acts or omissions when committed knowingly and with intent to defraud: (1) Presenting, or causing to be presented, or preparing any information containing false representations as to a material fact with knowledge or belief that the information will be presented by or on behalf of an insured, claimant or applicant to an insurer, insurance producer or other person engaged in the business of insurance concerning any of the following: (c) A claim for payment or benefit pursuant to an insurance policy;
A. “Fraudulent insurance act” means any of the following acts or omissions when committed knowingly and with intent to defraud: (2) Presenting, or causing to be presented, or preparing any information containing false representations as to a material fact with knowledge or belief that the information will be presented to or by an insurer, insurance producer or other person engaged in the business of insurance concerning any of the following: (5) Embezzling, abstracting, purloining or converting money, funds, premiums, credits or other property of an insurer or other person engaged in the business of insurance;