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 make arrests and serve process for violations of state law discovered during 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 collaborate with other law enforcement agencies. The amendments also clarify that investigators must meet the minimum standards set for law enforcement officers and ensure that any criminal activity uncovered during investigations is 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