IMMUNITY STATUTES: PROTECTING OPEN COMMUNICATION BETWEEN INSURERS AND LAW ENFORCEMENT By Rob Runyan and Dan Grossman Open lines of communication between insurers and law enforcement are vital to the detection and prosecution of insurance fraud and intentionally set fires. Certain state statutes protect such lines of communication by providing immunity to investigators who make fraud referrals to law enforcement. As tort litigation by policyholders and their counsel continues to increase, including defamation claims against carriers making referrals, these statutes become more significant. This article examines immunity statutes and their attendant limitations across important jurisdictions and aims to provide practical guidance to ensure that the protections of these statutes are enjoyed. A. INSURANCE FRAUD IMMUNITY While insurance fraud immunity statutes have notable distinctions from state to state, they typically protect insurers who share information with law enforcement officials regarding suspected " While insurance fraud immunity statutes have notable distinctions from state to state, they typically protect insurers who share information with law enforcement officials regarding suspected fraud, assuming the information is not provided maliciously or in bad faith. " fraud, assuming the information is not provided maliciously or in bad faith.1 Indeed, courts have recognized that -- at least regarding defamation claims -- a general exception to statutory immunity exists for statements made with " actual malice. " 2 Though some insurance fraud immunity statutes contain definitions of " malice " or " bad faith, " 3 most immunity statutes leave these terms open for judicial interpretation. While many SUMMER 2022 | SIU TODAY 9