401 - Title; legislative declaration and purpose.

§  401. Title; legislative declaration and purpose. This article shall  be known and may be cited as the "insurance frauds prevention act".    (a) The legislature finds and declares that the business of  insurance  directly  and indirectly affects all sectors of the public, business and  government. It further finds that the business of  insurance,  including  organization and licensing, the issuance of policies, and the adjustment  and  payment  of claims and losses, involve many transactions which have  potential for abuse and illegal activities.    (b) The superintendent and the department have broad  authority  under  this  chapter  to  investigate activities which may be fraudulent and to  develop evidence thereon. This article is intended to  permit  the  full  utilization of the expertise of the superintendent and the department so  that  they  may  more  effectively  investigate  and  discover insurance  frauds, halt fraudulent activities and  assist  and  receive  assistance  from  federal  and  state law enforcement agencies in the prosecution of  persons who are parties to insurance frauds.    (c) Arson for insurance fraud is a particularly damaging crime against  society, destroying lives, property and neighborhoods.  Insurance losses  resulting from  arson  are  reflected  in  higher  premiums  charged  to  residents of this state.    (d)   This   article   establishes   a   framework  within  which  the  superintendent and the department can more  effectively  assist  in  the  elimination  of  arson  for  insurance  fraud.  That increased capacity,  together with a more  effective  monitoring  of  fire  loss  claims  and  payments  by  the  insurance  industry through centralized reporting and  oversight, is intended to make it more difficult to perpetrate the crime  of insurance fraud by arson.