2. Initial appointments and staff. Within 30 days of the effective date of this Act, the appointing authorities under the Maine Revised Statutes, Title 24-A, section 2192, subsection 1 shall make those appointments. Notwithstanding the provisions of Title 24-A, section 2192, subsection 3, paragraph A, the Governor shall appoint the initial Director of the Insurance Fraud Unit within the Bureau of Insurance under Title 24-A, section 2193, subsection 1 and the Attorney General shall assign an assistant attorney general to the Insurance Fraud Unit pursuant to Title 24-A, section 2193, subsection 4. Within 30 days of appointment, the Director of the Insurance Fraud Unit shall prepare an initial budget for review by the Board of Insurance Fraud pursuant to Title 24-A, section 2193, subsection 1, paragraph F and appoint a chief investigator of the Insurance Fraud Unit pursuant to Title 24-A, section 2193, subsection 2. Within 30 days of appointment, the chief investigator shall hire as initial staff 5 field investigators under Title 24-A, section 2193, subsection 3 and any clerical staff as needed.

SUMMARY

This bill creates the Bureau of Insurance, Insurance Fraud Unit, overseen by the Board of Insurance Fraud and administered by a director. The personnel of the Insurance Fraud Unit include the director, a chief investigator, field investigators, clerical staff and an assistant attorney general permanently assigned to the unit. Assistant district attorneys may also be temporarily assigned to the Insurance Fraud Unit. The purpose of the Insurance Fraud Unit is to respond to complaints of and investigate and prosecute instances of insurance fraud. This bill requires insurers and self-insureds in the State to create special investigation groups within their organizations that have at least one licensed private investigator who is either an employee or independent contractor to report any suspected insurance fraud to the Insurance Fraud Unit. Personnel of the Insurance Fraud Unit have law enforcement powers to carry out their investigatory duties, including the power to subpoena, administer oaths, execute warrants and request court orders as part of their investigations. The Insurance Fraud Unit is funded by a 25¢ fee on certain insurance policies and the Board of Insurance Fraud is authorized to borrow up to 30% of the start-up costs of the Insurance Fraud Unit.