WILLIAM DONALD SCHAEFER, Governor                            Ch. 538

nonclassified positions under the provisions of Article 48A, § 18 of this Act, shall remain
subject to the provisions of Article 64A of the Annotated Code of Maryland after their transfer
to the Maryland Insurance Administration for as long as they retain those positions and until
they leave the previously classified position.

SECTION 7. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as
follows:

Article 48A - Insurance Code

233A.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "INSURANCE FRAUD" MEANS CRIMINAL ACTIVITY INVOLVING:

(I) A VIOLATION OF § 233 OF THIS ARTICLE;

(II)      THEFT, AS SET OUT UNDER ARTICLE 27, §§ 340 THROUGH 342 OF
THE CODE:

1. FROM A PERSON REGULATED UNDER THIS ARTICLE; OR

2. BY ANY PERSON REGULATED UNDER THIS ARTICLE OR BY
ANY OFFICER, DIRECTOR, OR EMPLOYEE OF ANY PERSON REGULATED UNDER THIS
ARTICLE; AND

(III)    ANY OTHER APPLICABLE CRIME OF FRAUD SET OUT UNDER
ARTICLE 27 OF THE CODE THAT IS COMMITTED BY OR AGAINST A PERSON OR ENTITY
REGULATED UNDER THIS ARTICLE.

(3) "INSURANCE FRAUD DIVISION" MEANS THE INSURANCE FRAUD
DIVISION IN THE OFFICE OF THE ATTORNEY GENERAL.

(B) IN COORDINATION AND CONSULTATION WITH THE INSURANCE FRAUD
DIVISION, THE COMMISSIONER SHALL:

(1) INVESTIGATE SUSPECTED INSURANCE FRAUD;

(2) COLLECT FACTUAL INFORMATION RELATING TO SUSPECTED
INSURANCE FRAUD;

(3) PRESENT ALL FACTUAL INFORMATION COLLECTED ON SUSPECTED
INSURANCE FRAUD TO THE INSURANCE FRAUD DIVISION; AND

(4) REFER ANY CASES FOR CRIMINAL PROSECUTION FOR INSURANCE
FRAUD TO THE INSURANCE FRAUD DIVISION.

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