[§431E-48]  Life settlement anti-fraudinitiatives.  (a)  Providers and brokers shall have in place anti-fraudinitiatives reasonably calculated to detect, prosecute, and prevent fraudulentlife settlement acts.  At the discretion of the commissioner, the commissionermay order, or a licensee may request and the commissioner may grant, suchmodifications of the following required initiatives as necessary to ensure aneffective anti-fraud program.  The modifications may be more or lessrestrictive than the required initiatives so long as the modifications mayreasonably be expected to accomplish the purpose of this section. Anti-fraudinitiatives shall include:

(1)  Fraud investigators, who may be provider orbroker employees or independent contractors; and

(2)  An anti-fraud plan that shall be submitted to thecommissioner.  The anti-fraud plan shall include but not be limited to:

(A)  A description of the procedures fordetecting and investigating possible fraudulent life settlement acts andprocedures for resolving material inconsistencies between medical records andinsurance applications;

(B)  A description of the procedures forreporting possible fraudulent life settlement acts to the commissioner;

(C)  A description of the plan for anti-fraudeducation and training of underwriters and other personnel; and

(D)  A description or chart outlining theorganizational arrangement of the anti-fraud personnel who are responsible forthe investigation and reporting of possible fraudulent life settlement acts andinvestigating unresolved material inconsistencies between medical records andinsurance applications.

(b)  Anti-fraud plans submitted to thecommissioner shall be privileged and confidential and shall not be a publicrecord and shall not be subject to discovery or subpoena in a civil or criminalaction. [L 2008, c 177, pt of §1]