What is the purpose of the "Insurance Fraud Prevention Act" in West Virginia?

The purpose of the "Insurance Fraud Prevention Act" in West Virginia is specifically aimed at combating and preventing insurance fraud within the state. Insurance fraud can take many forms, including fraudulent claims, misrepresentation, and other deceptive practices that can undermine the integrity of the insurance system, ultimately affecting policyholders and the financial stability of insurers.

This Act establishes mechanisms to identify, investigate, and prosecute fraudulent activities in the insurance sector, ensuring that consumers are protected from the financial impact of fraud and that the system functions fairly. It promotes ethical practices among insurers and their customers, fostering trust within the insurance marketplace.

While other options touch on important aspects of insurance regulation, such as marketing practices, solvency oversight, or claims dispute resolution, they do not directly address the critical focus of the Insurance Fraud Prevention Act, which is centered on the prevention and combat of fraud.