House Bill No. 401, introduced by Representative Dickerson, amends existing law regarding fees assessed on direct premiums of insurers and the management of the Insurance Fraud Investigation Dedicated Fund Account. The bill modifies R.S. 40:1428(C) to ensure that unexpended and unencumbered funds in the account at the end of the fiscal year will remain in the account rather than being refunded to licensed insurers, as was previously required. This change aims to enhance the financial stability of the fund dedicated to insurance fraud investigations.

Additionally, the bill repeals R.S. 40:1428(A)(3), which mandated a reduction in fee assessments based on the cumulative costs of operating insurance fraud programs. By removing this provision, the bill allows for a more consistent fee structure without the requirement for reductions based on prior expenditures. The proposed changes are set to take effect upon the governor's signature or after the designated period for gubernatorial action.

Statutes affected:
HB401 Original: 40:1428(C), 40:1428(A)(3)
HB401 Engrossed: 40:1428(C), 40:1428(A)(3)