[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6340256,"mediaKeyId","2259725-919578851e0800e8123db4ddbb0427bd","parentId",2259725,"title","Committee adopts bill broadening insurance-fraud definition to target inflated property claims","audioSeconds",661,"startMs",182000,"endMs",843000,"viewUrl","/Search/View?dp=1&key=2259725-919578851e0800e8123db4ddbb0427bd&start=182&end=843","thumbnailUrl","https://assets.pipeline.soar.com/2259725-919578851e0800e8123db4ddbb0427bd/thumbnail_182000.jpg","articleUrl","/articles/6340256/Kentucky/Committee-adopts-bill-broadening-insurance-fraud-definition-to-target-inflated-property-claims","mediaUrl","https://secure.pipeline.soar.com/6340256-50cfb9edc5e7ec5edf12c2f4e5cc2d52/orig.mp4?Expires=1771163470&Signature=oIrHmKqy9cvd2NYW8DI8fjeyNxGE4R7~79npnvSHFiU7vxlpyjTNBhw015I5387hKYLvyLiJlH05piAKdgAYC~ZLtMxQWkWkyoeO8NGS-1OI5I0lTaYYvZwwdI38X3~Go4wq2jEokb44nY4ppGKxlGe81v2Ql-~jKqWD00-JSU-Wm1PhQEuDCWfMCGGJLdZJz3SLhKjVnYrI92~MKKA1zvgY9aOsgbpj5X2WDVbBrZRKbZafoz1wqSlsqKOBzo~UqfS1WKr64iOGQKhk5ahyUYWb~RrL9XGQt4qpnJL6BZTgBwTB60MAYOs~4wNPxG74J3Cex4y-Ci~KtPWt~M5usQ__&Key-Pair-Id=KUT5TJCACFTXG","author","KY LRC Committee Meetings","date","2025-02-11T00:00:00Z","article","Senate Bill 24, advanced on a committee substitute by the Kentucky Senate Banking and Insurance Committee, would expand the statutory definition of an insurance fraud act to encompass statements that misrepresent the scope of property damage or repair costs associated with a claim, sponsors and witnesses told the committee.

The change is intended to give law enforcement and regulators additional tools to investigate and prosecute fraud tied to property and casualty claims, proponents said. \"Property and casualty insurance fraud is not a victimless crime,\" said Chris Nolan of the Insurance Institute of Kentucky. Nolan told the committee the added authority could help address a rise in fraud tied to storms and catastrophic losses and reduce premium pressure. \"It's estimated that the cost to a single family each year is between $400 and $700 in increased premiums due to insurance fraud,\" Nolan said.

Eric DeCampos of the National Insurance Crime Bureau (NICB), testifying remotely, told the committee NICB \"strongly supports Senate Bill 24,\" saying the measure would close state-law loopholes exploited by a minority of bad actors and provide investigators with clearer authority to act.

Committee members discussed how fraud enforcement is currently handled. Witnesses and members described an existing insurance-fraud task force that includes Department of Insurance investigators and other participants; those investigators have referred cases to Commonwealth attorneys and to the attorney general's office, they said. Committee members raised capacity concerns for local prosecutors and discussed coordination with the Attorney General's Office to handle specialized or high-volume cases.

Several senators said the committee substitute had been narrowed to target deliberate inflation of claims and to avoid criminalizing negligence or legitimate dispute over repair estimates. \"Because of the changes and the willingness to make sure it's narrowly tailored to someone who is a criminal, I'm going to be supportive,\" said Senator Yates, describing his prior work in the Attorney General's Office and consumer-protection litigation.

On a roll call, the committee adopted the committee substitute and gave Senate Bill 24 a favorable recommendation. Those recorded as voting \"aye\" included Senator Rocky Adams; Senator Douglas; Senator Elkins; Senator Girdler; Senator Rawlings; Senator Smith; Senator Storm; Senator Yates; and Chair Carpenter (9 ayes). The motion and committee substitute were recorded as adopted with a favorable recommendation.

The bill will continue through the Senate's legislative process for additional consideration and potential floor action.","mediaType","Video","parentTitle","Senate Standing Committee on Banking & Insurance (2-11-25)","oneSentenceSummary","Senate Bill 24, advanced on a committee substitute by the Kentucky Senate Banking and Insurance Committee, would expand the statutory definition of an insurance fraud act to encompass statements that misrepresent the scope of property damage or repair costs associated with a claim, sponsors and witnesses told the committee.","taxTitle","2025 Legislature KY, Kentucky","taxId",77680,"location","Kentucky","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6340250,"Committee approves bill allowing nonadmitted insurers to write garage liability to help small dealers",424,950000,1374000,"/Search/View?dp=1&key=2259725-919578851e0800e8123db4ddbb0427bd&start=950&end=1374","https://assets.pipeline.soar.com/2259725-919578851e0800e8123db4ddbb0427bd/thumbnail_950000.jpg","/articles/6340250/Kentucky/Committee-approves-bill-allowing-nonadmitted-insurers-to-write-garage-liability-to-help-small-dealers","https://secure.pipeline.soar.com/6340250-59aa52513c5e1ca9d41bb5bab40cf738/orig.mp4?Expires=1771163470&Signature=LmVsycELSMdJyEm6bK3W4oZcSTkjgDgjd4NM~LARXYWQ0nF6DARslDlgyz10rayFWg3358nggaqLLsCiPo1v~YM172~cwV12RZrTy2kNtLasKTE-xLicNSFuRBmUm-ZEBTQrJ1kDn99cck9BE8-VO5WG83OFFw6XJW6uhJ-2WNX89ywcH0kUtrSg5iqtDJBjZ6sZgLOjr9kGy48ms-kypjYEk55l242t-CEtFSTYXK7nJ75XA6TA5bwfPzvdkiKXqWmWVtcEzHubKgsNubupaD72KtztR9LG65XVwtRJXxqRBhHahZQQlYaWZ-0fQUqx1lQAKud6UuA2~SYJI~63XA__&Key-Pair-Id=KUT5TJCACFTXG","Senate Bill 18, approved by the Kentucky Senate Banking and Insurance Committee, would permit nonadmitted (surplus-lines) insurers to offer garage liability coverage required for motor vehicle dealer licenses in Kentucky, supporters said.

Adam Sheridan of Reed Brothers Insurance Services in Somerset told the committee that the marketplace for garage liability has contracted sharply in recent years. \"When I started, there were more insurance companies than I could count. Now I tell people I can count on one hand how many insurance companies offer this coverage in the state of Kentucky,\" Sheridan said. He and sponsor Senator Girdler said the shortage leaves small, community dealers with few or no options to obtain the coverage required to keep a dealer license.

Supporters said allowing nonadmitted carriers would increase competition and access. Senator Girdler explained that nonadmitted carriers (often called surplus lines) already provide tailored risks in other lines, and have been available in Kentucky since the 1970s. Committee members and witnesses discussed consumer protections: nonadmitted carriers are not regulated by the Department of Insurance in the same way as admitted carriers, so agents and brokers have a role in vetting solvency and suitability. Officials noted that agents carry errors-and-omissions coverage and that agents advise clients on carrier financial health.

Committee members asked whether extending the market would preserve consumer protections in the event of insolvency. Witnesses said agents and brokers are the principal safeguard; they also noted surplus-lines carriers register with the department and pay taxes on business written in Kentucky. Committee members emphasized the need to ensure policyholders would not be left uncompensated if a nonadmitted carrier failed.

Adam Sheridan told the committee there are more than 2,500 dealer licenses in Kentucky and that the shortage of garage liability insurers disproportionately affects smaller, community dealers that support local events and youth sports.

On a roll call, the committee passed Senate Bill 18 with a favorable recommendation. Those recorded as voting \"aye\" included Senator Rocky Adams; Senator Douglas; Senator Elkins; Senator Girdler; Senator Howell; Senator Rawlings; Senator Storm; Senator Yates; and Chair Carpenter (9 ayes). The bill will proceed to the next stages of the legislative process.","Senate Bill 18 was advanced by the Senate Banking and Insurance Committee to allow nonadmitted (surplus-lines) carriers to provide garage liability coverage for motor vehicle dealers, supporters said this would expand market options for small dealers who are struggling to find coverage.","actionData","errors"]

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Committee adopts bill broadening insurance-fraud definition to target inflated property claims

Committee approves bill allowing nonadmitted insurers to write garage liability to help small dealers