SB43 Alabama 2024 Session

Summary

Primary Sponsor

Wes KitchensSenator

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

SB43 would extend the time to prosecute insurance fraud to seven years after detection and broaden the Insurance Fraud Unit's powers to investigate and enforce violations.

What This Bill Does

It raises the statute of limitations for prosecuting insurance fraud from two years after detection to seven years after detection. It creates and expands the Insurance Fraud Unit within the Department of Insurance, giving investigators tools like arrest powers, serving subpoenas, and conducting cross-state investigations, with information sharing to other agencies. It also imposes disqualification from the Alabama insurance business for anyone convicted of first-degree or second-degree insurance fraud and bars others from transacting in insurance on behalf of such individuals. The bill requires that information about criminal activity uncovered during investigations be shared with the Department of Public Safety or other state law enforcement, and it takes effect on October 1, 2024.

Who It Affects

• Group 1: Individuals accused or convicted of insurance fraud, and people seeking to work in Alabama's insurance industry; they would face a longer time window to bring charges and possible disqualification from the industry.
• Group 2: The Alabama Department of Insurance and its Insurance Fraud Unit, along with other state law enforcement agencies and insurers; they gain broader investigative powers and a framework for information sharing.

Key Provisions

• Increase the statute of limitations for prosecuting insurance fraud from two years after detection to seven years after detection.
• Disqualify anyone convicted of insurance fraud in the first or second degree from engaging in the business of insurance in Alabama; prohibit those convicted from transacting in insurance on behalf of such individuals.
• Create and empower the Insurance Fraud Unit within the Department of Insurance with powers such as arrest, serving of process, subpoenas, oaths, and cross-state investigations.
• Allow investigators to arrest with or without warrants and to investigate violations of this chapter and other state laws discovered during investigations; permit referrals to the Attorney General.
• Make insurance fraud a criminal activity under Article 4A of Chapter 18 of Title 15 of the Alabama Code.
• Require information about criminal activity discovered during investigations to be provided to the Department of Public Safety or the Alabama State Law Enforcement Agency.
• Effective date of 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