Senate File 2240 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON JUDICIARY

                                 (SUCCESSOR TO SSB
                                     3061)

                                      A BILL FOR

  1 An Act relating to the receipt of pecuniary damages by insurers
  2    as victims of insurance fraud for purposes of criminal
  3    restitution.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5272SV (2) 87
    ko/rj

PAG LIN



  1  1    Section 1.  Section 910.1, subsection 3, Code 2018, is
  1  2 amended to read as follows:
  1  3    3.  "Pecuniary damages" means all damages to the extent
  1  4 not paid by an insurer on an insurance claim by the victim,
  1  5 which a victim could recover against the offender in a civil
  1  6 action arising out of the same facts or event, except punitive
  1  7 damages and damages for pain, suffering, mental anguish, and
  1  8 loss of consortium. Without limitation, "pecuniary damages"
  1  9 includes damages for wrongful death and expenses incurred for
  1 10 psychiatric or psychological services or counseling or other
  1 11 counseling for the victim which became necessary as a direct
  1 12 result of the criminal activity.
  1 13    Sec. 2.  Section 910.1, subsection 5, Code 2018, is amended
  1 14 to read as follows:
  1 15    5.  "Victim" means a person who has suffered pecuniary
  1 16 damages as a result of the offender's criminal activities.
  1 17 However, for purposes of this chapter, an insurer paying a
  1 18 victim's insurance claim is not a victim and does not have a
  1 19 right of subrogation.  An insurer may be a victim for purposes
  1 20 of this chapter if insurance fraud in violation of section
  1 21 507E.3 or 507E.3A has been perpetrated against the insurer.
  1 22  The crime victim compensation program is not an insurer for
  1 23 purposes of this chapter, and the right of subrogation provided
  1 24 by section 915.92 does not prohibit restitution to the crime
  1 25 victim compensation program.
  1 26                           EXPLANATION
  1 27 The inclusion of this explanation does not constitute agreement with
  1 28 the explanation's substance by the members of the general assembly.
  1 29    This bill relates to insurers as victims for purposes of
  1 30 receipt of criminal restitution damages.  The bill amends the
  1 31 definitions of pecuniary damages and victim in the criminal
  1 32 restitution Code chapter. An insurer may be a victim for
  1 33 purposes of criminal restitution if the insurer is a victim of
  1 34 insurance fraud due to fraudulent submissions or fraudulent
  1 35 sales practices.  Insurers are currently excluded as victims
  2  1 for purposes of criminal restitution.
       LSB 5272SV (2) 87
       ko/rj