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

The proposed changes aim to streamline the funding process for the fraud unit and related sections within the Department of Insurance, allowing for more consistent financial support without the need for refunds to insurers. The bill is set to take effect upon the governor's signature or after the designated time for gubernatorial action, thereby ensuring that the provisions can be implemented promptly.

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