SENATE BILL 289

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Carroll H. Leavell

AN ACT

RELATING TO INSURANCE; AMENDING A SECTION OF THE NEW MEXICO INSURANCE CODE TO PROVIDE FOR PENALTIES FOR DEGREES OF FALSE APPLICATION OFFENSES AND PROVIDING A PENALTY FOR EMPLOYING CO-CONSPIRATORS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 59A-16-23 NMSA 1978 (being Laws 1984, Chapter 127, Section 290) is amended to read:

     "59A-16-23. FALSE APPLICATIONS, CLAIMS, PROOFS OF LOSS.--

          A. No agent, broker, solicitor, examining physician, applicant or other person shall knowingly or [wilfully] willfully:

                (1) make any false or fraudulent statement or representation as to any material fact in or with reference to any application for insurance or other coverage; [or]

                (2) for the purpose of obtaining any money or benefit, present or cause to be presented a false or fraudulent claim, or any proof in support of such a claim for payment of loss under a policy; [or]

                (3) prepare, make or subscribe a false or fraudulent account, certificate, affidavit or proof of loss, or other document, with intent that the same may be presented or used in support of such a claim; or

                (4) make any false or fraudulent statement or representation on or relative to an application for a policy, for purpose of obtaining any fee, commission, or benefit from an insurer, agent, broker or individual.

          B. Any such false statement or representation made under oath shall constitute and be punishable as perjury [and]. Any violation of this section [shall constitute and be punishable as a felony] by committing false application or fraudulent claim or submitting a fraudulent proof of loss when the purported loss or potential loss to the victim insurer is:

                (1) one hundred dollars ($100) or less is guilty of a petty misdemeanor;

                (2) over one hundred dollars ($100) but not more than two hundred fifty dollars ($250) is guilty of a misdemeanor;

                (3) over two hundred fifty dollars ($250) but not more than two thousand five hundred dollars ($2,500) is guilty of a fourth degree felony;

                (4) over two thousand five hundred dollars ($2,500) but not over twenty thousand dollars ($20,000) is guilty of a third degree felony; or

                (5) over twenty thousand dollars ($20,000) is guilty of a second degree felony.

          C. Whoever knowingly combines with another person or engages another person by soliciting, commanding, requesting, inducing, employing or otherwise attempting to commit false application or fraudulent claim or submit a fraudulent proof of loss is guilty of a third degree felony for each insurance claim per individual or for each co-conspirator."

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