In this subtitle the following words have the meanings indicated. “Fraud Division” means the Insurance Fraud Division in the Administration. “Insurance fraud” means: a violation of Title 27, Subtitle 4 of this article; theft, as set out in §§ 7–101 through 7–104 of the Criminal Law Article: from a person regulated under this article; or by a person regulated under this article or an officer, director, agent, or employee of a person regulated under this article; a violation of § 9–1106 of the Labor and Employment Article; or any other fraudulent activity that is committed by or against a person regulated under this article and is a violation of: Title 1, Subtitle 3 of the Agriculture Article; Title 19, Subtitle 2 or Subtitle 3 of the Business Regulation Article; Title 14, Subtitle 29, § 11–810, or § 14–1317 of the Commercial Law Article; the Criminal Law Article other than Title 8, Subtitle 2, Part II or § 10–614; Title 12, Subtitle 9 of the Financial Institutions Article; § 14–127 of the Real Property Article; § 6–301 of the Alcoholic Beverages and Cannabis Article; § 109 of the Code of Public Local Laws of Caroline County; § 4–103 of the Code of Public Local Laws of Carroll County; or § 8A–1 of the Code of Public Local Laws of Talbot County.

There is an Insurance Fraud Division in the Administration.

The head of the Fraud Division is an Associate Commissioner of Insurance. The Associate Commissioner of the Fraud Division shall be appointed by the Commissioner with the approval of the Governor. The Associate Commissioner is an employee of the Administration. The Associate Commissioner reports directly to and is under the direct supervision of the Commissioner. The Associate Commissioner of the Fraud Division is unclassified and is entitled to annual compensation as provided in the State budget. The Associate Commissioner of the Fraud Division is responsible for the operation of the Fraud Division and the exercise of all authority granted to the Fraud Division under this article.

The Commissioner shall request the Secretary of State Police to assign one or more State Police officers to work in coordination with the Fraud Division.

The Fraud Division: has the authority to investigate each person suspected of engaging in insurance fraud; if appropriate after an investigation: shall refer suspected cases of insurance fraud to the Office of the Attorney General or appropriate local State’s Attorney to prosecute the person criminally for insurance fraud; shall notify the appropriate professional licensing board or disciplinary body of evidence of insurance fraud that involves professionals; shall notify the appropriate professional licensing board of evidence of gross overutilization of health care services; shall notify the Workers’ Compensation Commission of suspected cases of insurance fraud referred to the Office of the Attorney General or appropriate local State’s Attorney under subparagraph (i) of this paragraph that involve the payment of compensation, fees, or expenses under the Workers’ Compensation Law; and shall assist local and State law enforcement agencies in the prosecution of automobile theft; shall compile and abstract information that includes the number of confirmed acts of insurance fraud and the type of acts of insurance fraud; in exercising its authority under this subtitle, shall cooperate with the Department of State Police, Office of the Attorney General, local State’s Attorney in the jurisdiction in which the alleged acts of insurance fraud took place, and appropriate federal and local law enforcement authorities; shall operate or provide for a toll–free insurance fraud hot line to receive and record information about alleged acts of insurance fraud; in cooperation with the Office of the Attorney General and Department of State Police, shall conduct public outreach and awareness programs on the costs of insurance fraud to the public; and shall investigate allegations of civil fraud and, if appropriate after investigation, impose administrative penalties and order restitution in accordance with § 27–408 of this article.

Notwithstanding any other provision of law, a criminal prosecution for engaging in insurance fraud may be brought in any county in the State in which: an element of the insurance fraud was committed; the purported insured loss occurred; the insurance policy in question provides coverage; the insurer or an agent of the insurer received a false or misleading statement or document; the defendant or respondent resides; or money or other benefit was received as a result of the insurance fraud. For a civil fraud violation, the Commissioner may impose administrative penalties and order restitution under § 27–408(c) of this article when one or more of the occurrences listed in subsection (a) of this section takes place in the State. If insurance fraud is determined to have occurred in any of the locations listed in subsection (a) of this section, a criminal or civil fraud action for all related violations may be joined in the same action.

The Office of the Attorney General shall report to the Fraud Division on each case not prosecuted and the reasons why the case was not prosecuted.