HB 140 — Insurance Department, insurance fraud, statute of limitations increased, investigators of Department of Insurance Fraud Unit, power of arrest to include other state laws

HB140 INTRODUCEDENROLLED HB140 GXPVC66-1GXPVC66-2 By Representative Ellis RFD:

07-Feb-24 Page 0 GXPVC66-1HB140 01/18/2024Enrolled FCEnrolled, (L)maAn 2024-252Act, 2Relating SYNOPSIS:to insurance fraud and the Department of Insurance;

Under existing law, various fraudulent activities by persons engaged in the transaction of the business of insurance constitute insurance fraud.

The Department of Insurance is delegated the duty to enforce insurance fraud laws and to investigate violations.

The statute of limitations on bringing a charge for a violation is two years after the fraud was detected.

This bill would increase the statute of limitations to seven years after the fraud was detected.

Also, under existing law, the Insurance Fraud Unit is established within the department to investigate alleged violations.

Investigators of the Insurance Fraud Unit have the power vested in law enforcement officers including the power of arrest.

This bill would delete a limitation in existing law limiting the power of the investigators only to powers necessary for enforcement of this chapter.

A BILL TO BE ENTITLED AN ACT Page 1 HB140 INTRODUCED Relating to insurance fraud and the Department of Insurance;

(d) For the purposes of Article 4A of Chapter 18 of Title 15, insurance fraud shall be considered criminal activity." "§27-12A-40 Page 21 HB140 INTRODUCEDEnrolled "§27-12A-40 (a) There is hereby established within the department the Insurance Fraud Unit.

(4) Share records and evidence with federal, state, or Page 2 HB140 Enrolled local law enforcement and regulatory agencies.

Page 3 HB140 INTRODUCED (5) Execute arrest warrants for criminal violations of this chapter or other state laws.

If the information the unit seeks to obtain is located outside of this state, the person from whom the information is sought may make the information available to the unit to examine at the 95 place where the information is located.

No person shallAn individual may not serve as investigator of the unit who unless he or she has not met the minimum standards established for law enforcement Page 3 HB140 Enrolled officers by the Alabama Peace Officers' Standards and Training Page 4 HB140 INTRODUCED Commission, or other standards as may be provided hereafter by law.

Page 54 HB140 Enrolled 95 97 99 ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 20-Feb-24.

John Treadwell Clerk Senate 08-May-24 Passed Page 5