HB140 Alabama 2024 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

Regular Session 2024

Title

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

Summary

HB140 extends the time to prosecute insurance fraud from 2 to 7 years after detection and expands the Insurance Fraud Unit’s enforcement powers, including arrest authority and handling violations of other state laws found during investigations.

What This Bill Does

It increases the statute of limitations for prosecuting insurance fraud from two years to seven years after the alleged violation was detected. It expands the Insurance Fraud Unit within the Department of Insurance, giving investigators powers similar to law enforcement—such as arrest, serving papers, and sharing information with other agencies—and allows these investigators to pursue violations of other state laws found during investigations. It creates new penalties and requirements for individuals convicted of insurance fraud and clarifies that insurance fraud is criminal activity under state law.

Who It Affects

• People who are suspected or convicted of insurance fraud would face a longer window to be charged and could be disqualified from working in the insurance business if convicted, under first- or second-degree fraud.
• The Department of Insurance and its Insurance Fraud Unit, along with insurance industry professionals and other state law enforcement agencies, gain expanded enforcement powers, cross-state investigative abilities, and reporting obligations.

Key Provisions

• Statute of limitations for prosecuting insurance fraud increased from 2 years to 7 years after detection.
• Disqualification from transacting in the insurance business for individuals convicted of first-degree or second-degree insurance fraud.
• Prohibition on allowing someone convicted of insurance fraud to transact in Alabama's insurance business.
• Insurance fraud treated as criminal activity under Article 4A of Title 15, Chapter 18.
• Establishment and funding of the Insurance Fraud Unit within the Department of Insurance with qualified investigative staff and resources.
• Expanded powers for the unit, including inspection, subpoenas, oaths, sharing records, arrest warrants, and arrest on probable cause, and authority to conduct investigations outside the state.
• Investigators shall have full law enforcement powers as needed to enforce this chapter and related state laws, subject to standards for law enforcement personnel.
• Information about criminal activity discovered during investigations to be shared with the Department of Public Safety and Alabama State Law Enforcement Agency.
• Effective date: October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance