HB140 Alabama 2024 Session

Summary

Primary Sponsor

Corley Ellis Representative

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

Description

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.

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Subjects

Insurance