RÉSUMÉ DIGEST
ACT 340 (SB 369) 2024 Regular Session Bass
Existing law (R.S. 22:1924 and 1925) provides for prohibited practices and sanctions for a
person that commits insurance fraud.
New law retains existing law and adds the 19th Judicial District Court, parish of East Baton
Rouge, as an appropriate venue for a matter arising out of a violation of existing law.
Existing law authorizes the commissioner of insurance (commissioner) to assess an insurer
a fraud assessment fee to support the costs of an investigation, enforcement, public
education, public awareness, and prosecution of insurance fraud in this state.
Existing law requires the fraud assessment fee to be reduced by the amount of the excess
proportion if an insurer is assessed a fraud assessment fee that exceeds 5% of the cumulative
cost for the previous year.
New law makes technical changes including removing the effective date that has passed.
Existing law authorizes the commissioner to withhold up to $30,000 per year from the fees
collected to defray the costs of collecting the fee, enforcement, and operation of the Dept.
of Insurance. Existing law requires the commissioner to withhold $187,000 of the fraud
assessment fee to fund the La. Automobile Theft and Insurance Fraud Prevention Authority
(LATIFPA).
New law retains existing law but removes funding for LATIFPA and provides that the funds
are to be used to fund insurance fraud detection, investigation, and public awareness.
Existing law requires the fraud assessment fee to be used to support the costs of an
investigation, enforcement, public education, public awareness, and prosecution of insurance
fraud in this state, and requires the fraud assessment fee to be allocated as follows:
(1) 75% to the insurance fraud investigation unit within the office of state police.
(2) 15% to the Dept. of Justice for the insurance fraud support unit.
(3) 10% to the Dept. of Insurance for the insurance fraud section.
New law retains existing law but adds that the purpose of the assessment fee is to support
the costs of an investigation, enforcement, public education, public awareness, and
prosecution of insurance fraud in this state. New law requires the funds to be allocated to the
insurance fraud investigation unit within the state police, the insurance fraud support unit
within the Dept. of Justice, the section of insurance fraud within the Dept. of Insurance, and
other state agencies that enter into a written agreement with the superintendent of state
police, the attorney general, and the commissioner on or before Sept. 30, 2024.
Existing law provides for the Insurance Fraud Investigation Dedicated Fund Account
(account), and requires the account to be appropriated, administered, and used solely and
exclusively for purposes of the fraud unit, fraud support unit, insurance fraud section, and
LATIFPA.
New law retains existing law but removes LATIFPA.
New law relative to venue became effective on May 28, 2024.
New law relative to insurance fraud becomes effective on September 1, 2024.
(Amends R.S. 40:1428(A)(3) and (4) and (C); adds R.S. 22:1924(C) and 1925(D); repeals
R.S. 40:1429)


Statutes affected:
SB369 Original: 40:1428(A)(3)
SB369 Engrossed: 40:1428(A)(3)
SB369 Enrolled: 40:1428(A)(3)
SB369 Act 340: 40:1428(A)(3)