SB354 Summary

• Creates Chapter 12A of Title 27 to define insurance fraud and establish criminal penalties ranging from Class A misdemeanor to Class B felony depending on loss amount, with a six-year statute of limitations for prosecution.

• Establishes the Insurance Fraud Unit within the Department of Insurance with investigative powers including subpoena authority, arrest powers, and ability to share information with law enforcement and regulatory agencies.

• Requires insurers authorized to write in Alabama to pay $200 annual assessments to fund the unit; creates the Insurance Fraud Unit Fund with appropriations of $320,000 for fiscal years ending September 30, 2011 and 2012.

• Provides civil immunity from liability for persons reporting suspected insurance fraud in good faith, except when statements are made with actual malice; requires mandatory reporting by insurers and permits reporting by others to the Attorney General or Department of Insurance.

• Mandates fraud warning statements on insurance documents and makes documents and evidence from fraud investigations privileged and confidential, not subject to discovery or subpoena in civil or criminal actions except as specified.