MS SB2701

Creates the Insurance Department Fraud Detection Trust Fund in the State Treasury to fund resources for detecting insurance fraud, cybersecurity review, arson investigations, and other Insurance Commissioner duties.

Increases the annual contribution cap from insurance companies from $750,000 to $1,000,000 for both property/casualty insurers and life/health/accident insurers.

Removes the requirement that insurance company contributions be deposited into the State General Fund, allowing funds to remain in the dedicated trust fund with no fiscal year lapse.

Authorizes the Insurance Commissioner to apply for federal or private grants to supplement fraud detection funding.

Responds to increased insurance fraud from advanced technologies including AI-generated deepfakes, fake documents, synthetic identity fraud, and cyberfraud, with an effective date of July 1, 2026.