The bill amends Sections 27-12A-6 and 27-12A-40 of the Code of Alabama 1975, concerning insurance fraud and the powers of the Department of Insurance's investigators. The statute of limitations for prosecuting insurance fraud is extended from two to seven years after the alleged violation is detected. Additionally, the bill specifies that individuals convicted of insurance fraud in the first or second degree are disqualified from engaging in the insurance business in Alabama.

The Insurance Fraud Unit within the Department of Insurance is given expanded powers similar to those of law enforcement officers, including the power of arrest and service of process for any state law violations discovered during investigations. The bill removes the word "hereby" from the establishment clause of the Insurance Fraud Unit and changes the language to allow the unit to enforce any state laws, not just those specific to insurance fraud. It also updates the agency to which criminal activity information is provided from the "Department of Public Safety" to the "Alabama State Law Enforcement Agency." The act is set to become effective on October 1, 2024.

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