The bill amends Sections 27-12A-6 and 27-12A-40 of the Code of Alabama 1975 to enhance the enforcement of insurance fraud laws. Notably, it increases the statute of limitations for prosecuting insurance fraud from two years to seven years after an alleged violation is detected. Additionally, the bill grants investigators within the Department of Insurance the same powers as law enforcement officers, including the authority to arrest and serve process for any violations of state law discovered during their investigations.

Furthermore, the bill establishes the Insurance Fraud Unit within the Department of Insurance, which will be responsible for conducting independent inquiries and investigations into suspected insurance fraud. The unit is empowered to inspect records, issue subpoenas, and conduct investigations both within and outside the state. The language also clarifies that investigators must meet the minimum standards set for law enforcement officers and mandates that any criminal activity discovered during investigations be reported to the Alabama State Law Enforcement Agency. The act is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 27-12A-6, 27-12A-40
Enrolled: 27-12A-6, 27-12A-40