33-1-1302. Insurance fraud -- insurer. (1) A person commits the act of insurance fraud when in the course of offering or selling insurance, 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.
     (2) 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 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).
     (3) In addition to any penalty provided for in 33-1-317, the commissioner may require a person regulated under this title who commits insurance 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 or refund received by the victim from the insurance.
     (4) The commissioner may require a person who commits insurance fraud to make full restitution to any insurer, purported insurer, or insurance producer who may have sustained any losses as a result of the fraud with interest of 10% a year from the date of the loss plus any costs and reasonable attorney fees.
     (5) 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 10% a year, and costs incurred in obtaining a judgment.
     (6) Failure of a person to pay any amount ordered under this section constitutes a forfeiture of the right to do business in this state.
     (7) A person who purposely or knowingly is involved in the misappropriation or theft of insurance premiums or proceeds commits the offense of theft and is punishable as provided in 45-6-301, and the commissioner may refer evidence concerning the violation to the attorney general or other appropriate prosecuting attorney.

     History: En. Sec. 2, Ch. 390, L. 1997.