It is enacted by the General Assembly as follows:

SECTION 1. Title 27 of the General Laws entitled "Insurance" is hereby amended by adding thereto the following chapter:

{ADD 27-54-1. Crimes by or affecting persons engaged in the business of insurance. -- ADD} {ADD (a) Any person who knowingly and with intent to deceive the director of business regulation (hereinafter "director") about the financial condition of an insurance company, makes any false statement, representation or report to the director concerning an insurance company; or who knowingly and with intent to deceive the director about the financial condition of the company testifies or affirms falsely under oath or affirmation to any material fact relative to an insurance company in any matter which would materially affect the financial condition of the company; or who knowingly and with intent to deceive the director about the financial condition of the company makes any false entry or memorandum upon any book, paper, report or statement of any insurance company; or, who, knowingly and with intent to deceive the director or his or her designee or any agent appointed to examine the affairs of an insurance company, or knowingly and with intent to deceive, defraud or injure the stockholders, policyholders or any officer or director of an insurance company about the financial condition of the company makes a statement, representation or report to the director or his or her designee which such individual knows materially overvalues any asset, property or security of an insurance company; or who knowingly and with intent to deceive the director about the financial condition of the company fails to disclose material information and any person who, with like intent, aids or abets another in any violation of any provision of this section, shall upon conviction thereof, be fined not exceeding $50,000 or imprisoned not exceeding twenty (20) years or both. ADD}

{ADD 27-54-2. Civil penalties. -- ADD} {ADD In addition to the criminal penalties set forth in section 27-54-1, the attorney general or the director or his or her designee may bring a civil action against any person who engages in conduct constituting an offense under this chapter and, upon proof of such conduct by a preponderance of the evidence, such person shall be subject, for each violation, to a civil penalty not exceeding $50,000 or the amount of damages caused by such conduct, whichever is greater. If the insurance company is placed in conservation, rehabilitation, or liquidation, the conservator or receiver shall also be entitled to bring such action, and such penalty shall be paid to the conservator or receiver for the benefit of the policyholders, claimants, and creditors of such insurer. The imposition of a civil penalty under this subsection does not preclude any other criminal or civil statutory, common law, or administrative remedy, which is available bylaw to the State of Rhode Island or any other person. ADD}

{ADD 27-54-3. Investigations. -- ADD} {ADD (a)(1) Pursuant to sections 27-13-1 and 27-13.1-1, et. seq., the director or his or her designee may conduct such investigation as he or she deems necessary in order to ascertain whether any person has violated or is violating any provision of this chapter. ADD}

{ADD (a)(2) Whenever the director or his or her designee has reason to believe that a provision of this chapter has been violated, he may report such violation of law to the attorney general who may bring an action in the court of appropriate jurisdiction. Within one hundred twenty days of receipt of the director's report, the attorney general shall inform the director or his or her designee as to the status of the reported violations. Where the insurer affected has become the subject of a court order for conservation, rehabilitation or liquidation, the director or his or her designee may also refer the matter to the receiver for action under section 27-54-2. ADD}

{ADD 27-54-4. Duty of notify. -- ADD} {ADD (a)(1) Whenever an officer or director of an insurance company knows that a material false statement or representation has been made to the director or his or her designee, or that false testimony has been given, or that a material false entry has been made in the books of the insurance company, or that the assets, property or securities of an insurance company have been materially overvalued, or that material information has been withheld from the director or his or her designee, in violation of section 27-54-1 of this chapter, he or she shall notify the director or his or her designee of such matters as soon as reasonably possible but in no event later than ten days after the officer or director knows or has reasons to know of such matters. Failure to report as such will subject the violator to a fine of up to $1,000 and imprisonment of up to one year, or both. ADD}

{ADD (a)(2) The director or his or her designee shall review each report and undertake such further investigation as he deems necessary and proper to determine the validity of the allegations. ADD}

{ADD 27-54-5. Disqualification of officer and directors. -- ADD} {ADD No person may serve as a director, officer or senior management official of an insurance company who has been convicted of a felony involving fraud, dishonesty, or a breach of trust. ADD}

{ADD 27-54-6. Injunctions. -- ADD} {ADD If the attorney general or the director or his or her designee has reason to believe that a person is engaged in conduct prohibited by this chapter, he or she may petition an appropriate court for an order prohibiting that person from further engaging in such conduct. The filing of a petition under this section does not preclude any other remedy which is available by law. ADD}

{ADD 27-54-7. Whistleblower protections. -- ADD} {ADD (a) Prohibition against discrimination. -- No person subject to the provisions of this chapter, may discharge, demote, threaten or otherwise discriminate against any person or employee with respect to compensation, terms, conditions, or privileges of employment as a reprisal because the person or employee (or any person acting pursuant to the request of the employee) provided or attempted to provide information to the director or his or her designee regarding possible violation of this chapter. ADD}

{ADD (b) Enforcement. -- Any person or employee or former employee subject to the provisions of this chapter who believes that he or she has been discharged or discriminated against in violation of subsection (a) may file a civil action within three years of the date of such discharge or discrimination.

(c) Remedies. -- If the court determines that a violation has occurred, the court may order the person who committed the violation to --

(1) reinstate the employee to the employee's former position;

(2) pay compensatory damages, costs of litigation and attorneys' fees; and/or

(3) take other appropriate actions to remedy any past discrimination.

(d) Limitation. -- The protections of this section shall not apply to any person or employee who --

(1) deliberately causes or participates in the alleged violation of law or regulation; or

(2) knowingly or recklessly provides substantially false information to the director or his or her designee. ADD}

{ADD 27-54-8. Other law enforcement authority, powers and duties not affected or impaired.-- ADD} {ADD This chapter shall not: (a) Preempt the authority or relieve the duty of other law enforcement agencies to investigate and prosecute suspected violations of the law.

(b) Limit any of the powers granted elsewhere in this title or other laws granting authority to the director or his or her designee to investigate possible violations of this chapter and take appropriate action against wrongdoers. ADD}

{ADD 27-54-9. Limitation of Actions. -- ADD} {ADD The statute of limitations for offenses under this chapter shall be ten (10) years. ADD}

{ADD 27-54-10. Severability. -- ADD} {ADD If any provision of this chapter or the application therefor to any person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality shall not affect other provisions or applications of this chapter which can be given effect without the invalid or unconstitutional provision or application, and to this end, the provisions of this chapter are declared to be severable. ADD}

SECTION 2. Chapter 27-1 of the General Laws entitled "Domestic Insurance Companies" is hereby amended by adding thereto the following section: {ADD 27-1-16.2. Court approved settlements. -- ADD} {ADD Notwithstanding any provisions of law to the contrary, a person, corporation, or other entity who has resolved its liability to the receiver in a judicially-approved good faith settlement shall not be liable for claims for contribution or equitable endemnity regarding matters addressed in the settlement. Such settlement does not discharge any other joint tortfeasors unless its terms so provide, but it reduces the potential liability of such joint tortfeasors by the amount of the settlement. ADD}

SECTION 3. Section 27-2.3-3 of the General Laws in Chapter 27-2.3 entitled "Single License Procedure Act" is hereby amended to read as follows:

{ADD 27-2.3-3. License required. -- ADD} (a) No person shall act as or hold oneself out to be an insurance producer for any class or classes of insurance unless duly licensed for such class or classes in accordance with this act.

(b) No person shall, for a fee, engage in the business of offering any advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages under any policy of insurance that could be issued in Rhode Island, unless that person is:

(1) Engaged or employed as an attorney licensed to practice law in Rhode Island;

(2) A licensed insurance producer offering advice concerning a class or classes of insurance for which the insurance producer is licensed;

(3) A trust officer of a bank performing duties incidental to such officer's position;

(4) An actuary or a certified public accountant engaged or employed in a consulting capacity, performing duties incidental to that position; or

(5) A licensed public adjuster acting within the scope of any applicable license.

(c) Any person who shall violate this section by operating without a license shall be guilty of a misdemeanor {ADD and fined not exceeding one thousand dollars ($1,000) or imprisoned for a term not exceeding one (1) year, or both ADD} . Such matter shall be referred to the department of the attorney general.

SECTION 4. Section 27-10.1-9 of the General Laws in Chapter 27-10.1 entitled "Motor Vehicle Damage Appraisers" is hereby amended to read as follows:

{ADD 27-10.1-9. Reinspection of collision damage. -- ADD} (a) The director of the department of business regulation is hereby authorized and empowered to promulgate rules and regulations which require reinspection of ten percent (10%) of all automobile insurance carrier claims after collision damage is repaired. The required percentage shall be reviewed by the department of business regulation on an annual basis.

(b) All automobile repair facilities shall, upon reasonable request by the insurer or consumer, present proof of authenticity through invoices and/or receipts for all new and used collision repair parts excluding price of the part or parts to correlate with the work completed form. Insurance carriers shall obtain from auto body repair facilities proof of purchase of the new or used collision repair parts, either by authenticated invoices and/or receipts excluding price.

(c) Each insurance carrier or its agents assigned to or conducting a reinspection shall be a licensed motor vehicle physical damage appraiser, and shall conduct such inspection in a professional manner consistent with training required to obtain DBR certification or licensing. If body shop testing equipment is required, a fee to be set by the director of the department of business regulation will be paid by the insurance carrier to the body shop.

SECTION 5. Section 27-49-2 of the General Laws in Chapter 27-49 entitled "Motor Vehicle Theft And Motor Vehicle Insurance Fraud" is hereby amended to read as follows:

{ADD 27-49-2. Definitions. -- ADD} (1) "Authorized governmental agency" shall include:

(a) The office of the attorney general for the state of Rhode Island.

(b) The state police for the state of Rhode Island.

(c) Any police {ADD or fire ADD} department of a municipality of the state of Rhode Island.

(d) The U.S. attorney's office for the state of Rhode Island.

(e) Any duly constituted criminal investigative department or agency, including the federal bureau of investigation of the United States.

(f) Any solicitor or prosecuting attorney for a municipality of the state of Rhode Island.

(g) The director of the insurance division of the state of Rhode Island.

(h) The director of the registry of motor vehicles for the state of Rhode Island.

(i) The office of automobile theft and insurance fraud established by section 31-50-1.

(2) "Relevant" means having a tendency to make the existence of any fact that is of consequence to the investigation or determination of the issue more probable or less probable than it would be without the information.

(3) "Insurer" shall mean any domestic insurer or foreign insurer, licensed to provide automobile insurance coverage pursuant to the provisions of this title, or otherwise liable for any loss due to motor vehicle theft or motor vehicle insurance fraud.

(4) "Insured" shall mean a person, corporation or other entity for which automobile insurance coverage is provided by an insurer.

SECTION 6. Section 1, 3, 4, and 5 of this act shall take effect upon passage. Section 2 shall also take effect upon passage and shall apply to all actions or claims pending on the date of passage and all settlements consummated after passage.