This 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, and it is unlawful to willfully permit such individuals to transact in the insurance business.

The bill also establishes the Insurance Fraud Unit within the Department of Insurance, detailing its duties, powers, and the qualifications required for its investigators. Investigators are granted law enforcement powers, including arrest and service of process, not only for violations of insurance fraud laws but also for any state law violations discovered during their investigations. The bill removes the requirement that the unit's powers are limited to enforcing the chapter on insurance fraud, allowing for broader enforcement capabilities. Information related to criminal activity uncovered by the unit is to be provided 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