Bill > HB5195

This bill amends Section 4511 of the Insurance Code of 1956 to increase the penalties for committing fraudulent insurance acts. The bill creates a tiered system of penalties based on the amount of the fraudulent claim(s) and the number of fraudulent claims involved. Penalties range from a misdemeanor punishable by up to 1 year in prison and a fine of up to $2,000 or 3 times the amount of the fraudulent claim(s) for smaller-scale fraud, to a felony punishable by up to 20 years in prison and a fine of up to $50,000 or 3 times the amount of the fraudulent claim(s) for the most egregious cases involving $100,000 or more in fraudulent claims or 100 or more fraudulent claims. The bill also requires restitution to be paid and allows for the aggregation of fraudulent claims made within a 12-month period to determine the total amount or number of claims involved.