<?xml version='1.0' encoding='utf-8'?>
<section article="gin" article_name="Insurance" number="27-408" title_number="27" title_name="Unfair Trade Practices and Other Prohibited Practices" subtitle_number="4" subtitle_name="Fraudulent Insurance Acts">
  <level label="a">
    <level label="1">
      <text>A person that violates § 27–407 of this subtitle, or another provision of this subtitle in which the claim or act that is the subject of the fraud has a value of $300 or more is guilty of a felony and on conviction, for each violation, is subject to:</text>
      <level label="i">
        <text>liability for restoring to the victim the property taken or the value of the property taken; and</text>
      </level>
      <level label="ii">
        <level label="1">
          <text>for a violation of any provision of § 27–403 of this subtitle, a fine, the maximum of which is the greater of three times the value of the claim or act that is the subject of the fraud and $10,000 and the minimum of which is $500, or imprisonment not exceeding 15 years or both; and</text>
        </level>
        <level label="2">
          <text>for a violation of any provision of § 27–404, § 27–405, § 27–406, § 27–406.1, § 27–407, § 27–407.1, or § 27–407.2 of this subtitle, a fine not exceeding $10,000 or imprisonment not exceeding 15 years or both.</text>
        </level>
      </level>
    </level>
    <level label="2">
      <text>A person that violates a provision of this subtitle in which the claim or act that is the subject of the fraud has a value of less than $300 is guilty of a misdemeanor and on conviction, for each violation, is subject to:</text>
      <level label="i">
        <text>liability for restoring to the victim the property taken or the value of the property taken; and</text>
      </level>
      <level label="ii">
        <level label="1">
          <text>for a violation of any provision of § 27–403 of this subtitle, a fine, the maximum of which is the greater of three times the value of the claim or act that is the subject of the fraud and $10,000 and the minimum of which is $500, or imprisonment not exceeding 18 months or both; and</text>
        </level>
        <level label="2">
          <text>for a violation of any provision of § 27–404, § 27–405, § 27–406, § 27–406.1, § 27–407, § 27–407.1, or § 27–407.2 of this subtitle, a fine not exceeding $10,000 or imprisonment not exceeding 18 months or both.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>The penalties imposed under this section may be imposed separately from and consecutively to or concurrently with a sentence for another offense based on the act that constitutes a violation of this subtitle.</text>
    </level>
    <level label="2">
      <text>Each act of solicitation under § 27–407 of this subtitle constitutes a separate violation for purposes of the penalties imposed under this section.</text>
    </level>
    <level label="3">
      <text>Notwithstanding any other provision of law, a fine imposed under subsection (a) of this section is mandatory and not subject to suspension.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>In addition to any criminal penalties that may be imposed under this section, on a showing by clear and convincing evidence that a violation of this subtitle has occurred, the Commissioner may:</text>
      <level label="i">
        <text>impose an administrative penalty not exceeding $25,000 for each act of insurance fraud; and</text>
      </level>
      <level label="ii">
        <text>order restitution to an insurer or self–insured employer of any insurance proceeds paid relating to a fraudulent insurance claim.</text>
      </level>
    </level>
    <level label="2">
      <text>In determining the amount of an administrative penalty, the Commissioner shall consider:</text>
      <level label="i">
        <text>the nature, circumstances, extent, gravity, and number of violations;</text>
      </level>
      <level label="ii">
        <text>the degree of culpability of the violator;</text>
      </level>
      <level label="iii">
        <text>prior offenses and repeated violations of the violator; and</text>
      </level>
      <level label="iv">
        <text>any other matter that the Commissioner considers appropriate and relevant.</text>
      </level>
    </level>
    <level label="3">
      <text>If an administrative penalty is not paid after all rights of appeal have been waived or exhausted, the Commissioner may bring a civil action in a court of competent jurisdiction to collect the administrative penalty, including expenses and litigation costs, reasonable attorney’s fees, and interest.</text>
    </level>
  </level>
  <level label="d">
    <text>This section does not affect an insurer’s right to take any independent action to seek recovery against a person that violates this subtitle.</text>
  </level>
</section>
